Senator Ted Cruz of Texas has put forward a proposal to stop the US Federal Reserve (Fed) from releasing its own digital currency for the retail market.
According to the Republican senator, the bill would prohibit the government from utilizing the digital dollar to oversee the populace’s financial activities.
Cruz stated that it’s crucial to ensure that the United States’ digital currency policy safeguards user privacy, maintains dollar supremacy, and encourages advancement.
In contrast to decentralized cryptocurrencies such as bitcoin, Cruz worries that the digital dollar might be used to track Americans’ private transactions.
“The central bank digital currency should not be unilaterally established by the federal government. This legislation is intended to prevent regulators from centralizing or controlling cryptocurrencies and to enable them to thrive in the United States. We must empower business owners rather than hinder their financial freedom,” Cruz stated.
Indiana Senators Michael Braun and Iowa Senator Chuck Grassley supported Cruz’s initiative. According to Grassley, US residents should be free to spend their funds as they wish without worrying about the government monitoring every transaction.
The bill will offer individuals the assurance and peace of mind that their money will not be scrutinized. It’s worth noting that Florida Governor Ron DeSantis recently advocated for a ban on the digital dollar for comparable reasons.