Five US senators recently introduced a new bill to ban the Central Bank Digital Currency CBDC. The new bill titled Anti-Survellience State Act was issued to ban the Federal Reserve (Fed), the US central banking system, from issuing and developing the central bank digital currency.
This is the third time such a bill has been introduced and it’s backed by senators from five states in the U.S, including Ted Cruz (R-Texas), Bill Hagerty (R-Tenn.), Rick Scott (R-Fla.), Ted Budd (R-N.C.), and Mike Braun (R-Ind.).
On Feb. 26, the five US senators joined hands to introduce the CBDC Anti-Survellience State Act challenging the government’s authority to implement a CBDC.
Why Was the Ant-Survaillance CBDC Issued?
In the proposal, the senators expressed concern that US President Joe Biden’s administration would use a potential CBDC to monitor citizens and violate their rights. The bill is designed to fight against the Biden administration’s plan to issue a ‘digital dollar.’
Cuz requested the US Congress to clarify that the CBDC will not be used as a tool for monetary policy introducing authorizing legislation and the agency cannot become a retail bank in the future.
Scott and Bud expressed concern and stated that the financial privacy of U.S. citizens needs to be protected, they said the CBDC would open the door for the government to surveil and control the spending habits of Americans.
Cuz sees the CBDC as government-controlled programmable money that can collect personal details about citizens and potentially track and freeze their funds for any reason.
Other Parties Supporting the Anti-Surveillance CBDC
Besides the five US senators, the bill was also co-sponsored by other five associations, including Heritage Action for America (HAFA), the Blockchain Association, the American Bankers Association (ABA), the Independent Community Bankers Association (ICBA), and the Club for Growth (CFG).
Some politicians, including Florida Gov. Ron DeSantis, Rep. Alex Mooney (R-W.Va.), Rep. Tom Emmer (R-Minn.), and Rep. Warren Davidson (R-Ohio), also think the CBDCs could be used as a direct surveillance tool by the government and violate the privacy rights of American citizens.
In 2022, Biden signed an executive order for the federal government to explore the potential of use cases and the risk of issuing a CBDC, creating a chance for criticism of the state-backed digital currency among lawmakers.
In July last year, the Fed stated it was contemplating issuing a CBDC and the issuance could be only possible with an authorizing law.
CBDC Overview
Central Bank Digital Currency (CBDC) is a digital form of a country’s official currency, issued and regulated by its central bank. It operates on blockchain or similar technology, enabling secure and traceable transactions. CBDC aims to enhance the efficiency, transparency, and accessibility of the financial system while maintaining central bank control.
Central Bank Digital Currency (CBDC) marks a revolutionary chapter in the evolution of traditional currencies. Beginning as an experimental concept in the early 2010s, CBDCs gained momentum as central banks worldwide explored the integration of digital currencies into their monetary systems. The surge in interest intensified with the advent of cryptocurrencies, propelling central banks to examine the potential benefits and challenges of issuing their digital currencies. As a result, various pilot programs and research initiatives have emerged, shaping the trajectory of CBDC development and emphasizing the ongoing shift towards a digital future in global financial systems.
Besides the US, about 130 other countries are working on CDBC including China and Russia.
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