Five senators from the United States recently proposed a legislation banning central bank digital currencies (CBDCs), opposing the Biden administration’s plans to roll out a digital dollar. Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun have all expressed concerns over the potential for CBDCs to infrict citizens’ privacy rights, considering such currencies as tools for surveillance and a threat to freedom.
Their legislation is encapsulated in the CBDC Anti-Surveillance State Act, which directly challenges the Federal Reserve’s authority to put a CBDC into effect. Senator Cruz spearheaded the initiative by requesting Congress to declare that the Federal Reserve has no authority to execute a CBDC. Notably, the proposed bill aims to restrict the Federal Reserve’s authority to provide certain products or services to individuals and prohibits the use of CBDCs for monetary policy, among other things.
Senators Scott and Budd, in particular, emphasized the necessity of safeguarding citizens’ financial privacy. Budd expressed concern over the potential for the federal government to surveil and control spending habits through a CBDC and supported Senator Cruz’s efforts to hinder the establishment of such a currency.
The proposed legislation has also been backed by several associations, including Heritage Action for America, the Blockchain Association, American Bankers Association, Independent Community Bankers Association, and Club for Growth. Meanwhile, former President Donald Trump, currently running for the 2024 presidential election, has also expressed his opposition to CBDCs, citing concerns over their negative implications.