The Federal Reserve’s plan for digital dollar issuance in the United States was met with a roadblock after five senators filed legislation demanding a ban on CBDCs.
Five United States senators have joined hands to fight the Biden administration’s plans to issue a “digital dollar” by co-signing legislation demanding a ban on central bank digital currencies (CBDCs).
On Feb. 26, U.S. Senator Ted Cruz, along with Senators Bill Hagerty, Rick Scott, Ted Budd and Mike Braun, introduced the CBDC Anti-Surveillance State Act, challenging the Federal Reserve’s authority to implement a CBDC. The senators fear that the Biden administration’s CBDC will be programmed to surveil citizens and infringe on freedom.
Senator Cruz asked Congress to clarify that the Federal Reserve has no authority to implement a CBDC. The bill specifically goes against the Federal Reserve’s authority “to offer certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes.”
