Ted Cruz submitted a companion legislation, which could forbid the Fed to issue a direct-to-consumer digital dollar to American consumers.
The American politician and attorney serving as the junior United States Senator for Texas – Ted Cruz – introduced a bill restraining the Federal Reserve from launching a central bank digital currency (CBDC) directly to the broad society. The legislation was first submitted in January 2022 by Congressman Tom Emmer.
Emer’s Bill Receives Support
Public cryptocurrencies such as bitcoin are much different than centralized CBDCs. The latter are issued and monitored by a government entity or a central bank. In contrast, BTC is decentralized and can be transferred anywhere on a peer-to-peer basis without the need for an intermediary.
The 51-year-old Republican Senator Ted Cruz is, by all means, a bitcoin proponent and a CBDC critic. Recently, he introduced legislation that aims to prohibit the Federal State from developing a direct-to-consumer digital dollar to Americans. He believes that the Fed could use such a product as a surveillance tool, similar to what China does.
The bill also aims to preserve the dominance of the US national currency without competing with the private sector.
“The federal government has the ability to encourage and nurture innovation in the cryptocurrency space or to completely devastate it. This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom – not stifling it,” Cruz stated.
The Senator’s bill is companion legislation to Congressman Tom Emmer, who introduced his proposal on January 18, 2022. The latter revealed he is “glad” that Ted Cruz has supported his vision.
”The Fed must only craft a CBDC framework that is open, permissionless, and private […] Anything less puts Americans on the road to CCP-style financial authoritarianism,” Emmer maintained.
Why is Ted Cruz Pro-Bitcoin?
The Republican is among the biggest proponents of the primary cryptocurrency among the US political elite. Not long ago, he said he supports the asset because it represents freedom and decentralization, and the authorities cannot control it (a concept completely different from that of CBDCs).
He believes that those merits have become a reason for the total crypto ban imposed in China last year. Additionally, he thinks Elizabeth Warren – Senior Senator of Massachusetts – disregards bitcoin for the “exact same reason:”
“The Chinese communists and Elizabeth Warren both want to control your assets, your savings, your speech, your life, your children, every decision.”