{"id":3061,"date":"2022-04-02T02:04:50","date_gmt":"2022-04-02T02:04:50","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=3061"},"modified":"2022-04-02T02:04:50","modified_gmt":"2022-04-02T02:04:50","slug":"us-senator-cruz-introduces-bill-to-prevent-federal-reserve-from-using-digital-currency-as-surveillance-tool","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=3061","title":{"rendered":"US Senator Cruz Introduces Bill to Prevent Federal Reserve From Using Digital Currency as Surveillance Tool"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>U.S. Senator Ted Cruz has introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals and competing with the private sector. The senator from Texas warned that not only would this CBDC model centralize financial information, leaving it vulnerable to attack, but it could also be used \u201cas a direct surveillance tool into the private transactions of Americans.\u201d<br \/><\/strong><\/p>\n<h2>Senator Cruz Introduces Bill to Prevent the Fed From Issuing Digital Dollar to Retail Consumers<\/h2>\n<p>U.S. Senator Ted Cruz (R-TX) introduced legislation Wednesday \u201cto prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals,\u201d an announcement posted on his official website describes. The bill was co-sponsored by Senators Mike Braun (R-IN) and Chuck Grassley (R-IA).<\/p>\n<p>\u2018\u2018No Federal Reserve bank may offer products or services directly to an individual, maintain an account on behalf of an individual, or issue a central bank digital currency directly to an individual,\u201d the text of the bill reads.<\/p>\n<p>Stating that \u201cThe bill aims to maintain the dollar\u2019s dominance without competing with the private sector\u201d and \u201cIt is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts,\u201d the announcement details:<\/p>\n<p>The legislation prohibits the Federal Reserve from developing a direct-to-consumer CBDC which could be used as a financial surveillance tool by the federal government, similar to what is currently happening in China.<\/p>\n<p>The senator believes that central bank digital currencies (CBDCs) must adhere to three basic principles: protect financial privacy, maintain the dollar\u2019s dominance, and cultivate innovation. CBDCs that fail to do so \u201ccould enable an entity like the Federal Reserve to mobilize itself into a retail bank, collect personally identifiable information on users, and track their transactions indefinitely.\u201d<\/p>\n<p>Noting that \u201cUnlike decentralized digital currencies like bitcoin, CBDCs are issued and backed by a government entity and transact on a centralized, permissioned blockchain,\u201d the senator warned:<\/p>\n<p>Not only would this CBDC model centralize Americans\u2019 financial information, leaving it vulnerable to attack, it could also be used as a direct surveillance tool into the private transactions of Americans.<\/p>\n<p>Upon introducing the legislation, Senator Cruz commented, \u201cThe federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it.\u201d He stressed:<\/p>\n<p>This bill goes a long way in making sure big government doesn\u2019t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States.<\/p>\n<p>Cruz concluded: \u201cWe should be empowering entrepreneurs, enabling innovation, and increasing individual freedom \u2014 not stifling it.\u201d<\/p>\n<p>Following Senator Cruz\u2019s introduction of the bill, U.S. Representative Tom Emmer (R-MN) issued an announcement stating that Cruz\u2019s bill is a companion to his own bill, which is also aimed at \u201cprohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.\u201d Emmer introduced his bill on Jan. 18.<\/p>\n<p>The congressman said, \u201cI\u2019m glad Senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed\u2019s authorities,\u201d emphasizing:<\/p>\n<p>The Fed must only craft a CBDC framework that is open, permissionless and private \u2013 meaning any digital dollar must be accessible to all, transact on a blockchain that is transparent to all, and maintain the privacy elements of cash.<\/p>\n<p>\u201cAnything less puts Americans on the road to CCP-style financial authoritarianism,\u201d the congressman stressed.<\/p>\n<p>The Federal Reserve has not decided whether to issue a CBDC. In January, the Fed published a report exploring various aspects of a digital dollar.<\/p>\n<p>Some lawmakers and Federal Reserve governors are still undecided whether the U.S. should issue a central bank digital currency. Federal Reserve Governor Michelle Bowman similarly said in November, \u201cI\u2019m not really sure that I understand or see the business case for creating it.\u201d<\/p>\n<p><em><strong>Do you think the Fed should be able to issue a central bank digital currency directly to individuals? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/us-senator-cruz-introduces-bill-to-prevent-federal-reserve-from-using-digital-currency-as-surveillance-tool\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Senator Ted Cruz has introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals and competing with the private sector. The senator from Texas warned that not only would this CBDC model centralize financial information, leaving it vulnerable to attack, but it could also be used [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3062,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-3061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3061"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3061\/revisions"}],"predecessor-version":[{"id":3063,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/3061\/revisions\/3063"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/3062"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}