The bill aimed at preventing the Federal Reserve from using a CBDC as a financial surveillance tool is cosponsored by Republican Senators Chuck Grassley of Iowa and Mike Braun of Indiana.
Central bank digital currency, unlike decentralized digital currencies like Bitcoin BTCUSD, is issued and backed by a government entity and transact on a centralized, permissioned blockchain.
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The bill's sponsors argue that a CBDC model could centralize Americans' financial information, making it vulnerable to attack and allowing it to be used as a direct surveillance tool into private transactions.
Cruz said that the federal government has no authority to unilaterally establish a central bank currency. This bill will make sure big government doesn't try to centralize or control cryptocurrencies, and allows it to thrive in the United States. Braun also chimed in.
The government should not allow Americans to spy on Americans' financial information, because it's a bad idea, according to Braun. The federal government shouldn't have more control over your own money. I support this legislation to allow entrepreneurship to prosper and keep the federal government from taking advantage of your privacy rights. He said a policy that is impactful should be made by Congress, not by government bureaucrats.
He said that every American deserves peace of mind.
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