US senators oppose Joe Biden’s CBDC plans

The NFT Unicorn a7a93156-c0f9-4987-b2db-56958468655c US senators oppose Joe Biden’s CBDC plans Crypto News

Five United States senators have joined hands to fight the Biden administration’s plans to issue a “digital dollar” by co-signing legislation demanding a ban on central bank digital currencies (CBDCs). 

On Feb. 26, U.S. Senator Ted Cruz, along with Senators Bill Hagerty, Rick Scott, Ted Budd and Mike Braun, introduced the CBDC Anti-Surveillance State Act, challenging the Federal Reserve’s authority to implement a CBDC. The senators fear that the Biden administration’s CBDC will be programmed to surveil citizens and infringe on freedom.

Senator Cruz introduces legislation to ban central bank digital currencies. Source: senate.gov

Senator Cruz asked Congress to clarify that the Federal Reserve has no authority to implement a CBDC. The bill specifically goes against the Federal Reserve’s authority “to offer certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes.”

Related: US Senator Ted Cruz tries again with new bill to block CBDC

Senators Scott and Budd highlighted the need to protect the financial privacy of U.S. citizens. Budd added:

“A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans. Any push to establish a CBDC must be confronted and stopped, and that’s why I’m proud to join Senator Cruz’s effort to do just that.”

Cruz’s announcement on the legislation filing describes CBDC as “government-controlled programmable money” that can collect intimate personal details on citizens and potentially track and freeze funds for any reason.

If signed into law, the legislation would also require authorizing legislation from Congress to issue any CBDC in the future. It would ensure the Federal Reserve can’t mobilize into a retail bank.

In addition to the support of five senators, the legislation is also endorsed by five associations, namely Heritage Action for America (HAFA), the Blockchain Association, the American Bankers Association (ABA), the Independent Community Bankers Association (ICBA) and the Club for Growth (CFG).

On the other end of the spectrum, former President Donald Trump, who is running for the presidential election in 2024, has promised to “never allow” the formation of an in-house CBDC. Trump credited Vivek Ramaswamy for bringing attention to the negative impact of CBDCs.

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