WASHINGTON—Senator Mike Lee (R-UT) is pushing to prohibit the Federal Reserve from establishing a central bank digital currency (CBDC), CardRates.com reported.
Lee has reintroduced a bill, known as the No CBDC Act, that he had initially sponsored during the Biden Administration. The bill is cosponsored by other politicians, including Ted Cruz (R-TX), who has opposed the idea of the Federal Reserve establishing a CBDC, CardRates.com noted.
Lee’s decision to reintroduce the No CBDC Act follows an executive order from President Trump addressing digital assets.
Among other directives, the executive order aims to “protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by the prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States,” CardRates.com said.
CardRates.com added that the Atlantic Council recently released a report revealing that 134 countries and currency unions, which are economic groups sharing a common currency, are exploring the creation of a central bank digital currency in their respective regions. In May 2020, only 35 countries and currency unions were looking into establishing a CBDC, according to the report.