Senate Republicans Vow to Oppose Federal Reserve Creating CBDC
The conservative lawmakers comprising Republicans in the Senate affirmed their support for the anti-central bank digital currency. The Grand Old Party (GOP) politicians set the stage for anti-digital dollar issues in the forthcoming 2024 presidential polls.
The Monday, February 26 publication by Fox Business captured Texas Republican Senator Ted Cruz, who vowed alongside other Senate Commerce Committee members to double down and resist CBDC. The Republican senators alleged that the federal government would likely weaponize the underlying technology to spy on citizen’s financial activity and potentially deny access to the funds.
GOP Senators Oppose Biden Administration for Sanctioning CBDC Research
The criticism of efforts to unveil the digital dollar initiative coincides with the Biden administration’s sanctioning of the Federal Reserve (Fed) to undertake extensive research into CBDC issuance. The Fed was tasked with assessing the viability of CBDC, making payments cheaper and accessible to Americans.
The Senate Commerce Committee ranking member informed Fox Business that he would table a CBDC Anti-Surveillance State Act supported by Senators Bill Hagerty, Mike Braun, Kevin Cramer, and Rick Scott.
The anti-surveillance legislation indicates that the Federal Reserve is not authorized to issue CBDC to Americans without securing authorization from the US Congress. The bill draws support from advocacy groups and politicians opposed to the rushed nature of pursuing the digital dollar, alleging a potential invasion of privacy.
The Anti-Surveillance bill leverages the endorsement of various advocacy groups led by Heritage Action for America, the American Bankers Association, and the Blockchain Association.
The anti-CBDC bill will be a companion to the legislation tabled by the House Majority Whip Representative Tom Emmer titled Central Bank Digital Currency Anti-Surveillance State Act. The bill saw its reintroduction in September last year with 97 Republican members identified as its co-sponsors.
The bill by Senator Cruz is similar to Emmer’s proposals to prevent the Federal Reserve and member banks from issuance of CBDC. The sponsors allege that the Fed could weaponize the digital dollar in implementing monetary policy, thereby exercising control over the entire economy.
Digital Dollar Considered a Surveillance Channel to Infringe Privacy
Senator Cruz informed Fox Business that the Biden administration is keen on emulating the CBDCs usage in China. The Senator laments that China leverages the CBDCs to infringe on the freedom and intrude on the privacy of its citizens.
Senator Cruz warns that the digital dollar would be a surveillance channel for the government to monitor individual spending habits. He considers the threats posed to personal privacy as sufficient ground for Congress to clarify that the Fed lacks authority to implement the CBDC initiative.
China is among the few countries that fully implemented the CBDC that US senators accuse of using the digital yuan to track the citizens’ spending habits. The conservative lawmakers warn that approving the digital dollar would offer an open window for the Fed to survey the private financial data of the citizens. Such could result in mass surveillance and a basis for influencing monetary policy.
Anti-CBDC Messaging Dominates Presidential Rallies
Although the Fed has yet to decide on CBDC implementation, the Biden administration prioritized digital dollar research. Any anti-CBDC legislation would face opposition if Biden were to secure reelection.
Anti-CBDC messaging dominates in Republican presidential rallies, with several candidates seeking to tap voters opposed to government surveillance. Former President Trump indicated in his South Carolina primary speech that implementing CBDC is a dangerous move that would result in the sudden disappearance of bank account balances. He vowed never to allow the creation of CBDC within the country.
The former presidential candidates hopeful for the GOP conveyed the anti-CBDC rhetoric. In particular, Florida Gov. Ron DeSantis opposed the CBDC, similar to American entrepreneur Vivek Ramaswamy, who opposed the digital dollar.
Beyond Republicans, Democrat-turned-independent hopeful Robert Kennedy Jr. labeled CBDC as a calamity threatening to erode human and civil rights. He vowed to terminate the CBDC initiative in the country.
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