A group of five senators in the United States has united in opposition to the Biden administration’s proposal to introduce a “digital dollar.” They have co-signed a bill demanding a ban on central bank digital currencies (CBDCs) due to concerns about surveillance and the infringement of freedom. On February 26, Senator Ted Cruz, along with Senators Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun, introduced the CBDC Anti-Surveillance State Act, which challenges the authority of the Federal Reserve to implement a CBDC. Senator Cruz specifically asked Congress to clarify that the Federal Reserve does not have the power to introduce a CBDC. The bill aims to restrict the use of CBDCs for monetary policy and prevent the collection of personal information by the government. It would also require congressional authorization for any future issuance of a CBDC and prohibit the Federal Reserve from becoming a retail bank. The legislation has received support not only from the five senators but also from several associations, including Heritage Action for America, the Blockchain Association, the American Bankers Association, the Independent Community Bankers Association, and the Club for Growth. On the other hand, former President Donald Trump, who is running for the presidential election in 2024, has pledged to prevent the establishment of an in-house CBDC, attributing his stance to Vivek Ramaswamy’s efforts in highlighting the negative consequences of CBDCs.
Joe Biden's plans for a Central Bank Digital Currency face opposition from US senators.