As the United States is moving toward the 2024 presidential elections, candidates are opening up over their stance on cryptocurrency and linked regulations. Amid these developments, a report broke out that suggests that Senate Republicans are pushing hard to cut the Federal Reserve’s power to introduce a Central Bank Digital Currency (CBDC).
No CBDC in US?
According to FoxBusiness journalist, Eleanor Terrett, conservative lawmakers had voiced their concerns regarding the central bank backed tokens. They suggest that there is a chance of weaponization of CBDC technology for spying on Americans’ financial activities. By opting for this the authority might restrict access to users’ funds.
This move is led by Texas Republican Sen. Ted Cruz and backed by colleagues. This includes Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun.
It is being reported that these lawmakers will introduce the Central Bank Digital Currency Anti-Surveillance State Act. As reported, the bill asserts that the Federal Reserve lacks the authority to issue a CBDC to Americans without explicit congressional authorization.
The legislation is being endorsed by advocacy groups such as Heritage Action for America, the Blockchain Association, and the American Bankers Association. However, these rules align with House Majority Whip Tom Emmer’s counterpart bill with 75 co-sponsors in the House, it added.
It should be noted that this major need for such rules came in when the crypto industry is making its way to breach it at all time high (ATH). However, the cumulative market cap broke through the $2 trillion milestone.
Bitcoin, the biggest crypto, recently regained its $1 trillion market cap but it is still quite short of its ATH of around $69,000. BTC is trading at an average price of $51,270, at the press time.
What are the concerns?
Sen. Ted Cruz holds concerns regarding the Joe Biden administration’s interest in just copying China’s use of CBDCs. He suggests that this move can potentially violate citizens’ freedom and privacy as it can be used to surveil personal spending habits.
The opposing group fears that the digital dollar could provide the Federal Reserve access to private financial data. Eventually, it can enable mass surveillance and influence monetary policy.
As we dig in, China is among the 11 countries with a fully implemented CBDC now. The nation uses the digital yuan to monitor its citizens’ spending patterns. Republican lawmakers urge that approval of a digital dollar can lead the way for similar practices in the US