U.S. Senators Rally Against Digital Dollar Over Surveillance Fears; Trump Backs Stance
Summary:
Five U.S. senators, led by Teddy Cruz, have endorsed legislation to halt the Biden administration's plans of issuing a central bank digital currency (CBDC), fearing it could serve as a surveillance tool infringing on citizens' liberties. The proposed law, known as the CBDC Anti-Surveillance State Act, disputes the Federal Reserve's power to introduce a CBDC and would require authorizing legislation from Congress for any future CBDC issuance. The legislation has also gained support from five prominent associations. On the contrary, former President Donald Trump has pledged to prohibit the establishment of a domestic CBDC if he is re-elected in 2024.
A group of five senators from the United States is waging a battle against the Biden administration's proposition for a "digital dollar", endorsing a law to prohibit central bank digital currencies (CBDCs). Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun came together on February 26 to present the CBDC Anti-Surveillance State Act. The act directly questions the Federal Reserve's entitlement to introduce a CBDC and raises concerns about the administration's proposed CBDC serving as a tool of surveillance, curbing citizen liberties.
A piece of legislation seeking to halt the progress of central bank digital currencies has been put forth by Senator Cruz. Found on senate.gov, Cruz's initiative urges the US Congress to declare that the Federal Reserve lacks the mandate to instigate a CBDC. The designed law particularly disputes the Federal Reserve’s ability to “give individual access to certain products or services, to forbid the use of a central bank digital currency for managing monetary policy, and more”.
Emphasizing the importance of safeguarding the financial anonymity of American citizens, Senators Rick Scott and Budd have shown their support for this course. Budd stated, "The creation of a CBDC would permit the federal government to monitor and dictate the expenditure patterns of all Americans. Any initiative to establish a CBDC needs to be opposed and halted, and I’m pleased to support Senator Cruz in this endeavor."
The legislation described by Cruz characterizes a CBDC as “currency governed by the state with programmable directives” capable of gathering personal data on citizens and potentially regulating and freezing funds for any reason. If the law comes into effect, it would necessitate a directive from Congress to issue any CBDC in the future. Moreover, it would bar the Federal Reserve from transitioning into a retail banking role. The legislation also holds endorsements from five associations: the Heritage Action for America, the Blockchain Association, the American Bankers Association, the Independent Community Bankers Association, and the Club for Growth.
On the flip side, former President Donald Trump, who is vying for the presidential office in 2024, has vowed to “permanently impede” the establishment of a domestic CBDC. Trump expressed gratitude to Vivek Ramaswamy for making the adverse implications of CBDCs more noticeable.
In related news, Solana's stablecoin volume is seeing a boost thanks to DeFi bots, according to a magazine report.
Published At
2/27/2024 10:53:05 AM
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