U.S. Senator Cruz Introduces Bill to Prevent Federal Reserve From Using Digital Currency as a surveillance tool
U.S. Senator Ted Cruz has introduced legislation prohibiting the Federal Reserve from issuing a sizeable digital currency specifically to banks (CBDC), especially those also threatening private businesses.
Senator Cruz from Texas advised that the CBDC system CBDC program could centralize financial information, making it more susceptible to attacks.
But, it could be used “as a direct surveillance tool into the private transactions of Americans. “
Senator Cruz Introduced Bill to stop the Fed from distributing digital dollars to those who shop in stores.
U.S. Senator Ted Cruz (R-TX) introduced legislation on Wednesday “to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals,” an announcement on his official site clarifies.
This bill is co-sponsored by senators Mike Braun (R-IN) and Chuck Grassley (R-IA ).
“No Federal Reserve bank may offer products or services directly to an individual, manage an account for an individual and issue central bank’s cryptocurrency directly to an individual”, The bill’s text the declaration reads.
declaring that “The bill aims to maintain the dollar’s dominance without competing with the private sector” and “It is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts,” the announcement states:
Senator John McCain thinks that digital currency issued by central banks (CBDCs) must adhere to three essential guidelines: protect the privacy of financial transactions, maintain the power of the dollar, and encourage the advancement of technology. CBDCs that do not adhere to these guidelines “could enable an entity like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely. “
In announcing it’s “Unlike decentralized digital currencies like bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized, permissioned blockchain,” Senators advised that:
In introducing the bill, Senator Cruz declared, “The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it.” He further stated:
After the introduction of Senator Cruz for the bill, U.S. Representative Tom Emmer (R-MN) issued an announcement stating that the legislation proposed by Cruz is an amendment to his original statement and aimed toward “prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.” Emmer introduced his bill in January. 18.
The congressman added, “I’m glad Senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed’s authorities,” insisting that:
“Anything less puts Americans on the road to CCP-style financial authoritarianism,” the congressman stated.
The Federal Reserve has not decided whether or not it will issue CBDC or not. CBDC. In January, the Fed published a study on the various features of a virtual currency.
A handful of legislators or Federal Reserve governors are still uncertain about whether they think it is appropriate for the U.S. to issue a significant digital currency for banks. In the November issue of Federal Reserve, Governor Michelle Bowman said the following “I’m not really sure that I understand or see the business case for creating it. “
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