Republican Bill Seeks to Ban Central Bank Digital Currency in US Over Privacy Concerns
Republican Sen. Ted Cruz introduced new legislation on March 21 that would ban the Federal Reserve from launching a “direct-to-consumer” central bank digital currency (CBDC), citing concerns over its potential to be used as a “financial surveillance tool” by the federal government.
The latest bill is a second attempt by Cruz to stop the Federal Reserve from issuing a CBDC directly to individuals after he introduced a similar bill in March 2022.
Sens. Mike Braun (R-Ind.) and Chuck Grassley (R-Iowa) are co-sponsors.
In a press release announcing the bill, Cruz noted that countries such as China are developing CBDCs that “omit the benefits and protections of cash, as well as the control and security of many existing digital cryptocurrencies,” adding that it is “more important than ever to ensure the United States’ digital currency policy protects financial privacy, maintains the dollar’s dominance, and cultivates innovation.”…