Texas Senator Ted Cruz warns that introducing a central bank digital currency would threaten society as governments would have access to their citizens’ every transaction. The senator compared President Joe Biden’s executive order, directing the Federal Reserve to explore the launch of a CBDC, to China’s social credit score, “to destroy anonymity, to destroy decentralization”. Cruz spoke in support of Bitcoin, describing it as “clearly the alpha in the current crypto sphere”. Last month, Cruz introduced legislation to prohibit the Fed or the federal government from creating a CBDC, which, if approved, would lend the US senator’s title to “Dr. NO” instead of “Ted”.
Cruz warns of dangers a Central Bank Digital Currency poses to US citizens
Texas Senator Ted Cruz is sounding the alarm over the launching of Central Bank Digital Currencies (CBDC) as it poses significant potential risks to citizens, as their transactions can be monitored and recorded by their own respective governments. Senator Cruz remarked that CBDCs have many similarities to stable coins that follow the value of the US Dollar. But, the difference between the two is that CBDCs are centrally released by governments or central bankers, while stablecoins are created of private entities.
“I am very concerned about the risk of a CBDC as it poses substantial potential risks against our liberties by introducing constant surveillance on US citizens. I believe decisions regarding our personal money should only be made by the government elected by its people rather than unelected Banking officials.” Cruz declared during the Bitcoin Policy Conference.
Aside from warning about CBDCs, Senator Cruz also paid tribute to the longstanding digital currency Bitcoin, calling it the “alpha in the current crypto sphere,” having the “most dominant features.” He considers one of the main appeals is that it limits its supply to 21million coins, suggesting “it serves as a hedge against inflation-a particularly important feature when irresponsible politicians in Washington continue to spend like drunken sailors. ” For the senator, Bitcoin’s decentralized nature breaks from the grip of the US Dollar that is subject to continuous inflation from teetering economics, politicians mismanaging spending while allowing technology to mitigate access and central control.
Furthermore, Cruz commented on his personal investment in bitcoin, stating that he owns two and is looking to buy more. The Republican senator has adopted a long-term investment approach and labeled himself as fine with some level of volatility. Meanwhile, the nod to his Doctor No persona isn’t lost as he has previously sponsored a legislative block against ever creating a US government-issued CBDC, citing his agenda remains rooted in defending the privacy of the US citizen from manipulative government oversight.
[h/t Andrew Asmakov]