CBDC Anti-Surveillance State Act Back in the Senate

The CBDC Anti-Surveillance State Act has been reintroduced in the Senate with the support of five U.S. senators. “As Americans face the prospect of an increasingly weaponized government, ensuring financial privacy is pivotal,” said one senator who supports the bill. A central bank digital currency (CBDC) “would open the door for the federal government to surveil and control the spending habits of all Americans,” he stressed.

CBDC Anti-Surveillance State Act Reintroduced in Senate

U.S. Senators Ted Cruz (R-TX) announced Monday that he has reintroduced the CBDC Anti-Surveillance State Act with support from Senators Bill Hagerty (R-TN), Rick Scott (R-FL), Ted Budd (R-NC), and Mike Braun (R-IN). The bill aims “to halt efforts by the Biden administration to issue a central bank digital currency (CBDC),” the announcement states. Cruz first introduced this legislation in 2022; he introduced it again in 2023.

The senator from Texas explained:

The Biden administration salivates at the thought of infringing on our freedom and intruding on the privacy of citizens to surveil their personal spending habits, which is why Congress must clarify that the Federal Reserve has no authority to implement a CBDC.

“The CBDC Anti-Surveillance State Act would prohibit the Federal Reserve from issuing a CBDC directly to anyone, ensuring the Federal Reserve can’t mobilize itself into a retail bank,” the announcement details. “It would also bar the Federal Reserve from issuing a CBDC indirectly to individuals through financial institutions or other third parties, as well as prevent the Federal Reserve from using a CBDC as a tool to implement monetary policy and control the economy. Finally, the bill would require authorizing legislation from Congress for the issuance of any CBDC.”

The legislation is endorsed by Heritage Action for America (HAFA), the Blockchain Association, the American Bankers Association (ABA), the Independent Community Bankers Association (ICBA), and Club for Growth (CFG).

Senator Hagerty commented: “From Operation Chokepoint to recent reports of political and religious profiling by FinCEN, it is clear that government bureaucrats have been far too willing to exploit the financial system to advance political agendas and target Americans. This bill blocks the issuance of a central bank digital currency, preventing CBDC from being used as a tool to surveil and violate Americans’ privacy.”

Senator Budd said:

As Americans face the prospect of an increasingly weaponized government, ensuring financial privacy is pivotal. A CBDC would open the door for the federal government to surveil and control the spending habits of all Americans.

Congressman Tom Emmer (R-MN) introduced an equivalent bill in the House of Representatives, which has garnered the support of 75 lawmakers. Presidential candidate and former U.S. President Donald Trump has vowed to stop the Federal Reserve from creating a central bank digital currency.

Are you concerned about the Fed potentially misusing a central bank digital currency? Let us know in the comments section below.