US Republican lawmakers have submitted a bill to ban the implementation of a CBDC in the United States, citing worries about potential privacy violations.
Senator Ted Cruz, along with Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, introduced legislation named “the CBDC Anti Surveillance State Act” to explain that the Federal Reserve does not have the ability to implement a CBDC.
According to the senators who are championing the bill, the advent of federally sponsored CBDCs may generate significant privacy concerns, potentially giving regulatory authorities access to American consumers’ personal spending histories.
Senator Ted Cruz’s press statement emphasizes that government-backed digital currencies might provide federal authorities with precise transaction data, including information about individual users.
Cruz continued, “The Biden administration salivates at the prospect of infringing on our rights and trespassing on citizens’ privacy to monitor their personal spending habits, which is why Congress must clarify that the Federal Reserve has no jurisdiction to enact a CBDC. “I’m proud to lead the fight in the Senate to limit the Federal Reserve’s exploration of and attempt to introduce a CBDC into the American economy.”
Currently, the Federal Reserve is just in the early stages of conducting fundamental study on CBDCs, with Fed Vice Chairman for Supervision Michael Bar noting that any development would require White House and congressional approval.
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