Texas Governor jumps against American CBDC
Ted Cruz reintroduced a bill, which aims to ban the CBDC in the US state of Texas but also proposed idea to bring CBDC with better policy, in favour of financial privacy of citizens.
In the present time, more than 100 Central Banks are working on the central bank digital currency (CBDC) with different models & different concepts, to gain modernization in their traditional payment system. Since the beginning, the US Central Bank (Fed) was not in favour of CBDC but increasing competition in the CBDC development race forced the US government to study & develop American CBDC, or say US digital dollar.
On 21 March 2023, Texas Governor Ted Cruz reintroduced a bill to prohibit direct-to-consumer Federal Reserve-issued CBDC.
Through the bill, Cruz pointed out some major issues on which the US needed to work, like protecting financial privacy, maintaining the dollar’s dominance, and cultivating innovation. According to Cruz, if any CBDC fails to follow any of these three principles then it will result in a very big threat to the financial privacy of the citizens because in that situation the Fed will easily track all the financial activities & details of the CBDC user directly.
Senator Braun shared his opinion on this bill and said that the US government should not bring more control on the citizens’ money through a more centralised financial system.
Further Braun added:
“The federal government should not have even more control over your own money. I support this legislation to allow entrepreneurship to prosper and keep the federal government from further encroaching on your privacy rights,”
Senator Grassley also shared his opinion on this bill and supported Cruz’ anti CBDC bill. He said the financial privacy of the citizens should be maintained and also citizens should have the choice to remain anonymous with their particular financial activities.
Grassley believes that it will be better to design impactful policy on the CBDC model by Congress, not by the government bureaucrats.
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