WASHINGTON—Senator Ted Cruz (R-TX) has introduced a bill to block the Federal Reserve from launching a “direct-to-consumer” central bank digital currency.
In a statement Cruz said he introduced the bill to prevent the Fed from developing a retail CBDC, “which could be used as a financial surveillance tool by the federal government,” according to Cointelegraph.
Cruz stated it’s “more important than ever” to ensure U.S. policy on digital currencies protects “financial privacy, maintains the dollar’s dominance and cultivates innovation…CBDCs that fail to adhere to these three basic principles 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.”
Cruz claimed the federal government has “no authority to unilaterally establish” a CBDC, Cointelegraph noted.
“We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom — not stifling it,” the senator said.