U.S. Senator Ted Cruz has introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals and competing with the private sector. The senator from Texas warned that not only would this CBDC model centralize financial information, leaving it vulnerable to attack, but it could also be used "as a direct surveillance tool into the private transactions of Americans."

Senator Cruz Introduces Bill to Prevent the Fed From Issuing Digital Dollar to Retail Consumers

U.S. Senator Ted Cruz (R-TX) introduced legislation Wednesday "to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals," an announcement posted on his official website describes. The bill was co-sponsored by Senators Mike Braun (R-IN) and Chuck Grassley (R-IA).

''No Federal Reserve bank may offer products or services directly to an individual, maintain an account on behalf of an individual, or issue a central bank digital currency directly to an individual," the text of the bill reads.

Stating that "The bill aims to maintain the dollar's dominance without competing with the private sector" and "It is important to note that the Fed does not, and should not, have the authority to offer retail bank accounts," the announcement details:

"The legislation prohibits the Federal Reserve from developing a direct-to-consumer CBDC which could be used as a financial surveillance tool by the federal government, similar to what is currently happening in China."