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  • Writer's pictureCapitol Times

Citizens should not be allowed to obtain digital currency directly from federal banks: GOP Senators

GOP Senators is considering legislation banning the Federal Reserve from issuing central bank digital currency (CBDC) directly to individual citizens, since it is viewed as a possible surveillance device.

Senator Ted Cruz | Photo Credit: Gage Skidmore

It is "more important than ever" to make sure that America's digital currency policy protects financial privacy, promotes innovation, and preserves the U.S. dollar dominance, the three Republican senators noted in a March 31 news release.

A failure to do so might enable an agency like the Fed to "mobilize into a retail bank," allowing the agency to collect and track user information. Retail accounts from the Fed look questionable, the report said.

“The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it,” Cruz said in a press release.

Last month, President Joe Biden issued an executive order that asked the government to analyze the benefits and risks of creating a digital currency for central banks.

1st April 2022

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