According to Texas Senator Ted Cruz, central bank digital currency (CBDC) would be “profoundly dangerous” to society because governments can follow every single transaction made by their citizens via CBDCs.
Personal View on CBDC of Ted Cruz
According to Cruz, using a CBDC is intended “to destroy all value of Bitcoin, to destroy anonymity, and to destroy decentralization”.
CBDCs are tied to the value of a national currency, like the dollar. Also, they have some similarities with stablecoins, but there is a big difference between CBDC and a stablecoin. The management of CBDCs belongs to national governments or countries’ central banks while private entities on decentralized networks create stablecoins.
Ted Cruz’s Resistance to CBDC
Cruz presented legislation in March aimed at preventing the Fed or the federal government from establishing a CBDC. He claimed at the time that the American government had “no authority to unilaterally establish a central bank currency”.
Cruz added that one component of President Biden’s legislative plan was demanding that banks report every single transaction over $600 to the federal government.
Also, he said about CBDCs:
“The same people that want to see a CBDC, they hate Bitcoin, and they hate cash. Let’s be clear: They dislike currency for the same cause I do: That is because it is not centralized and is not under constant watch.’’
Ted Cruz hopes to see increased opposition to a CBDC. He asserted that such decisions need to be decided by Congress, which was chosen by the general populace, rather than by Federal Reserve governors who have no accountability to the American people.