Senators in the USA are fighting against the digital dollar – why do they want to block it?

US Senators Aim to Block the Issuance of Digital Dollar

A group of five senators, Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, recently introduced the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act, with the aim of blocking the planned issuance of a digital dollar by the central bank.

Concerns About Excessive Surveillance and Privacy Violations

The senators argue that the Federal Reserve should not have the authority to introduce a digital dollar out of concerns about government overreach and infringement on citizens’ privacy. The bill is intended to safeguard the economy and prevent potential abuse of the CBDC for monitoring transactions or monetary policy purposes.

Support for the Initiative

The proposal to ban the issuance of a digital dollar has garnered support from many organizations, including Heritage Action for America, the Blockchain Association, the American Bankers Association, the Independent Community Bankers Association, and the Club for Growth. This clearly illustrates that opposition to the planned CBDC is strong and diverse.

Broad Support for Blocking the Digital Dollar

It’s not just current senators expressing opposition to the digital dollar. Former US President Donald Trump and presidential candidate Robert F. Kennedy Jr. also share concerns about the introduction of CBDC. Trump warned that issuing a digital currency would violate citizens’ freedom, while Kennedy noted the potential risks of excessive surveillance and control over individual transactions, referring to the Chinese digital yuan model.

It appears that opposition to the digital dollar enjoys broad support among current and former decision-makers, which could impact the ongoing debate on the potential issuance of this new form of currency.