NORTH CAROLINA — Sen. Ted Budd co-introduced a bill Monday to prohibit the Federal Reserve from issuing a central bank digital currency, arguing the financial tool would give the government excessive power over citizens’ financial transactions and harm consumer privacy.
Budd (R-NC) introduced the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act alongside Sen. Ted Cruz (R-TX).
A CBDC is a form of digital currency issued by a country’s central bank with fixed values equal to a government’s fiat currency — government-issued currency without backing from a physical commodity. Eleven countries have launched CBDCs and many others including the United States are exploring their implementation with the use of blockchain technology similar to decentralized cryptocurrencies.
Supporters of CBDCs argue they would add convenience, stability, and privacy to the financial system. Opponents counter CBDCs would give excessive federal control over citizens’ transaction-level data and potentially allow the government to restrict accounts associated with politically unpopular activity.
“As Americans face the prospect of an increasingly weaponized government, ensuring financial privacy is pivotal,” Budd said in a statement. “A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans. Any push to establish a CBDC must be confronted and stopped, and that’s why I’m proud to join Senator Cruz’s effort to do just that.”
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