US Senator Ted Cruz Introduces Bill to Prohibit Federal Reserve from Issuing CBDC

US Senator Ted Cruz introduced a bill on March 26 to prevent the Federal Reserve from launching a central bank digital currency (CBDC). The bill, known as the “Anti-CBDC Surveillance State Act,” would stop the Fed from providing specific products or services directly to American individuals, a crucial aspect of any CBDC. Cruz's bill is seen as a companion to Minnesota Representative Tom Emmer's anti-CBDC legislation reintroduced on March 6. Both bills emphasize that the prohibition should not apply to any dollar-denominated currency that is open, permissionless, and private, while also preserving the privacy protections of US coins and physical currency.

Since 2020, the Federal Reserve has been exploring the possibility of a digital version of the US dollar, with at least four research projects currently underway. Cruz has been a vocal critic of CBDCs since 2022, introducing legislation to ban the Fed from issuing a direct-to-consumer CBDC. Emmer has also expressed concerns about CBDC technology, stating that allowing unelected officials to issue a CBDC could disrupt the American way of life. Despite some nations and regions exploring CBDCs, critics argue that digital currencies issued directly to citizens could infringe on privacy and lead to government overreach.