- Ted Cruz has introduced legislation to ensure that the Federal Reserve is not in charge of a digital dollar
- Cruz filed companion legislation to a piece already introduced in January by Representative Tom Emmer
- The pair feel that the Fed should not be in control of a U.S. CBDC
Texas Senator Ted Cruz has introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. Cruz introduced the legislation to complement Minnesota Representative Tom Emmer’s bill on the same subject which he introduced in January. Both men feel that the Federal Reserve shouldn’t be in control of any digital dollar as they fear it could be used as a financial surveillance tool by the government, and the filing comes just days after the ECASH bill supporting a Treasury-issued CBDC.
Fed-controlled CBDC Would “Omit Protections of Cash”
Representative Emmer submitted the legislation earlier this year, citing concerns over the oversight that a Fed-issued CBDC would have over citizens. At the time, Emmer compared a Fed-issued digital dollar with designs such as the digital yuan in China which he said “fundamentally omit the benefits and protections of cash” and “collect personally identifiable information on users, and track their transactions.
Emmer added that it was important that a U.S. CBDC policy “protects financial privacy, maintains the dollar’s dominance, and cultivates innovation”, something that he said wouldn’t happen under the Fed’s control.
Cruz seemingly agrees with this sentiment, filing companion legislation this week that echoed those thoughts:
“This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom – not stifling it.”
BREAKING: @tedcruz introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals. pic.twitter.com/HbpaPm0iRH
— Texas Bitcoin Alliance (@TexasCrypto1) March 31, 2022
Sentiment Echoes ECASH Proposal
The dual bills themselves echo the thoughts of a recently filed Electronic Currency And Secure Hardware (ECASH) Act this week, which was submitted by four lawmakers and would see a digital dollar that acted more like digital cash, issued by the Treasury and with the same levels of privacy as cash.
