Ted Cruz, the Republican Senator from Texas, has taken steps to prevent the Federal Reserve from establishing a central bank digital currency, according to a bill he introduced on Tuesday. The bill (S.887), co-sponsored by Senators Mike Braun of Indiana and Chuck Grassley of Iowa, claims that a central bank digital currency would be used as a “financial surveillance tool by the federal government,” and cites China’s digital currency as an example of this concern.
“The federal government has no authority to unilaterally establish a central bank currency,” Cruz said in a statement.
In his statement, Cruz also noted that the bill aims to allow cryptocurrency to continue to flourish in the United States by preventing big government from attempting to centralize or control it. “We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom — not stifling it,” he added.
The bill has been referred to the Committee on Banking, Housing, and Urban Affairs for further consideration.
“The legislation goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States,” Cruz said.
Meanwhile, co-sponsor Braun said in a statement, “Innovation, not government overreach, should drive the development of cryptocurrency and other digital assets in this country.”
The bill was met with both support and criticism on social media. One user tweeted, “We need more politicians like Ted Cruz, who are willing to protect our freedoms and stop the government from trying to control every aspect of our lives.”
On the other hand, some criticized Cruz’s move. “Why would you want to stop the development of something that could potentially revolutionize the way we handle money?” tweeted one user. “Ted Cruz needs to let people be and stop trying to control every single aspect of their lives.”
A new study by the CATO Institute suggests that a central bank digital currency (CBDC) may be the biggest threat to financial privacy since the Bank Secrecy Act and the establishment of the third-party doctrine. The study found that a CBDC would make it easier and faster for governments to freeze someone’s financial resources and create a direct line between citizens and the government.
Policymakers would be able to set negative interest rates, forcing spending by causing people to lose money. Additionally, governments could prohibit people from buying certain goods like alcohol, and financial information would be vulnerable to attack.
Sen. Ted Cruz has voiced similar concerns about the implications of a CBDC. In a statement, he argued that the federal government has no authority to establish a central bank currency and that a CBDC would leave Americans’ financial information vulnerable to attack. Sen. Chuck Grassley agreed, saying that the American people ought to be able to spend their money how they choose without the possibility that every transaction could be tracked by the government.
Governor Ron DeSantis of Florida has also taken action to ban CBDCs in his state, saying that they are about surveillance and control. He suggested that a federally controlled CBDC is the most recent way that elites are attempting to backdoor woke ideology into the US financial system, threatening individual privacy and economic freedom.
Foundation for Government Accountability CEO Tarren Bragdon applauded the governor’s stance, stating that a CBDC would change the message on US currency from “In God We Trust” to “In Government We Trust,” which he believes is wrong.
