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On March 26, U.S. Senator Ted Cruz introduced the “Anti-CBDC Surveillance State Act,” aiming to prevent the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. This legislation serves as a companion to a similar bill reintroduced by Representative Tom Emmer earlier in March.
Legislative Details and Intent
The proposed bill seeks to amend the Federal Reserve Act to prohibit the central bank from offering certain products or services directly to consumers, a foundational aspect of any potential CBDC. Both Cruz’s and Emmer’s bills emphasize the preservation of financial privacy and aim to prevent government overreach into individuals’ financial transactions.
Concerns Over CBDCs
Critics of CBDCs argue that such digital currencies could lead to increased government surveillance and control over personal finances. Senator Cruz has been a vocal opponent since 2022, introducing multiple pieces of legislation to block the Federal Reserve from creating a direct-to-consumer CBDC. Representative Emmer has echoed these concerns, stating that CBDC technology is “inherently un-American” and could disrupt the traditional financial system.
Global Context and Opposition
While several countries are exploring or implementing CBDCs, opposition within the U.S. remains strong. Former President Donald Trump has vowed to oppose the introduction of a digital dollar, and Federal Reserve Chair Jerome Powell has indicated that the Fed will not issue a CBDC during his tenure.
