Published: 02.04.2022
Article reading time:
2 minutes.
U.S. Senator Ted Cruz has introduced a bill to prevent the Federal Reserve from using central bank digital currency to control citizens’ private transactions.
As reported in a statement posted on the official website of Ted Cruz, the bill prohibits the US Federal Reserve System (FRS) from issuing Central Bank Digital Currency (CBDC) directly to individuals.
In particular, in the draft law, the senator proposes to ban the Fed from developing a state-owned, direct-to-consumer cryptocurrency that can be used by the federal government as a financial oversight tool, similar to what happens in China.
According to the senator, his bill is aimed at maintaining the dominance of the dollar without competition from the private sector.
“Unlike decentralized cryptocurrencies, CBDCs are issued and maintained by a government entity, and transactions with them are carried out on a centralized, permissioned blockchain. This CBDC model not only centralizes American financial information, making it vulnerable to potential attacks, but can also be used as a tool for direct surveillance of American private transactions and financial oversight, as is currently happening in China,” Cruz said.
Recall that at the end of March, a bill was submitted to the US Congress that proposes to transfer control over the issuance and circulation of the central bank’s digital currency to the Treasury, since the Fed cannot manage retail accounts.
Source: Bits
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