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U.S. Senators Rally Against the CBDC Initiative Proposed by the Biden Administration

A group of senators oppose the CBDC plans of current administration

A coalition of five United States senators has taken a stand, unveiling legislation aimed at halting the creation of central bank digital currencies (CBDCs). Spearheading this legislative effort on February 26 was Senator Ted Cruz, joined by Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun. Together, they presented the CBDC Anti-Surveillance State Act, directly challenging the Federal Reserve's capacity to launch a CBDC.

This collective action underscores a profound apprehension regarding the potential for a government-issued digital currency to become a tool for surveilling American citizens, thereby eroding individual freedoms. 

Senator Cruz articulated, pressing Congress for a clear statement that the Federal Reserve lacks the authority to implement a CBDCЖ

"The Biden administration's CBDC will be programmed to surveil citizens and infringe on freedom," 

Senators Scott and Budd further emphasized the critical importance of safeguarding U.S. citizens' financial privacy. 

Senator Budd remarked, aligning with Senator Cruz's initiative to confront and halt any advancements towards establishing a CBDC:

"A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans," 

The legislation and its implications

The legislative push against the Federal Reserve's ability to issue a CBDC, termed the CBDC Anti-Surveillance State Act, seeks to strip the central bank of the authority 

"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." 

This move not only questions the Federal Reserve's current capabilities but also sets a precedent requiring any future CBDC issuance to obtain explicit authorization from Congress, effectively blocking the Federal Reserve from transitioning into a retail bank.

Senator Cruz's firm stance on the issue is encapsulated in his remarks on the legislation, describing the CBDC as 

"government-controlled programmable money." 

He raises concerns about the potential for such a currency to "collect intimate personal details on citizens" and to enable the government "to track and freeze funds for any reason," portraying a grim future of financial surveillance and control.

This legislative effort is not without its backers; it has garnered support from a diverse array of associations including 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). Such wide-ranging endorsement underscores the significant apprehension surrounding the concept of a CBDC and its implications for privacy and individual freedoms.

On the political front, former President Donald Trump has voiced his opposition to an in-house CBDC, aligning with the senators' concerns. Trump's statement, crediting Vivek Ramaswamy for highlighting the potential negative impacts of CBDCs, complements the legislative efforts by promising to "never allow" the formation of such a currency, should he return to office.