U.S. The bill was first introduced by Senators Braun (R–IN) and Grassley(R–IA).
This announcement highlights the importance to ensure that the U.S.’s digital currency policy “protects financial privacy and maintains the dominance of the dollar, while encouraging innovation.” Cruz warned:
CBDCs that do not adhere to these basic principles could allow an entity such as the Federal Reserve to mobilize themselves into a retail banking bank, collect personally identifiable data on users, and track their transactions for years.
Senator from Texas pointed out that CBDCs, unlike decentralized cryptocurrency like bitcoin, ‘centralize Americans financial information, making it vulnerable to attack.
He added that the federal government does not have the authority to unilaterally create a central bank currency.
Entrepreneurs should be empowered, allowing innovation and increasing individual freedom, not suppressing it.
Senator Braun stated that allowing the government to centralize Americans financial information and increase surveillance on Americans’ financial activities is a bad idea.
Senator Grassley commented on the bill he cosponsored.
American citizens should be free to spend their money as they wish without fear of being tracked down by the government.
Senator Cruz is a Bitcoin investor and purchases BTC every week. He expressed optimism about crypto and said that he was bullish over BTC as it is decentralized and inexplicable. He introduced a resolution in January encouraging Capitol gift stores to accept cryptocurrency.
Tom Emmer, a congressman from Florida, also recently introduced his ‘CBDC Anti-Surveillance State Act’ to the House of Representatives. Florida Governor Ron DeSantis introduced a ban against the use of federally adopted CBDCs as money in his state this week.
Jerome Powell, the Federal Reserve Chairman, stated earlier this month that the Fed was not yet at the stage to make any decisions about a CBDC. He stated that he had not decided whether this was something the financial system of the country would need or want.