Home Crypto people USA Senators Oppose Joe Biden CBDC Plans

USA Senators Oppose Joe Biden CBDC Plans

27 Feb, 2024 Crypto people

USA Senators Oppose Joe Biden CBDC Plans

Five U.S. senators have united to oppose the Biden administration's proposal to introduce a "digital dollar" by jointly sponsoring legislation that calls for a prohibition 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 mandate to implement a CBDC.

The senators express concerns that the administration's CBDC plans could lead to citizen surveillance and encroach upon individual freedoms.

Senator Cruz has urged Congress to clarify that the Federal Reserve lacks the authority to roll out a CBDC.

The bill explicitly opposes the Federal Reserve's power "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."

Senators Scott and Budd emphasized the importance of safeguarding the financial privacy of American citizens. Budd stated:

“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 statement on the legislation filing characterizes CBDC as "government-managed programmable currency" capable of gathering sensitive personal information on citizens and potentially monitoring and freezing assets for any reason.

If enacted, the legislation would also mandate congressional authorization for any future issuance of CBDCs, preventing the Federal Reserve from functioning as a retail bank.

In addition to the backing of the five senators, the legislation has garnered support from five organizations:

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 opposite end of the spectrum, former President Donald Trump, who is seeking re-election in 2024, has vowed to "never permit" the creation of an internal CBDC.

Trump credited Vivek Ramaswamy for drawing attention to the adverse effects of CBDCs.

Sources:

https://cointelegraph.com/news/us-senators-ban-joe-biden-cbdc

https://www.hagerty.senate.gov/wp-content/uploads/2024/02/cbdc_anti-surveil-_lance_state_act.pdf

https://www.cruz.senate.gov/newsroom/press-releases/sen-cruz-introduces-legislation-to-ban-central-bank-digital-currencies

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