Opponents of a potential central bank digital currency observe that the asset, which would be managed by the Federal Reserve and tethered to the value of the dollar, may increase government surveillance and control of private citizens. The legislation submitted by Cruz, as well as Sen. Mike Braun (R-IN) and Sen. Chuck Grassley (R-IA), would ban monetary policymakers from implementing the technology.
“The federal government has no authority to unilaterally establish a central bank currency,” Cruz remarked in a press release. “This bill goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom, not stifling it.”
Cruz noted that the Federal Reserve could effectively establish itself as a retail bank and monitor the transactions of all Americans should officials create a central bank digital currency. He asserted that the centralization of financial information would also leave the nation vulnerable to cyberattacks and resultant economic disruption.