Texas Senator Ted Cruz warns of the dangers behind introducing a central bank digital currency (CBDC).
In a new interview at a Bitcoin (BTC) policy summit hosted by Swan Bitcoin, Cruz says a CBDC gives the government too much control over people’s currency.
“I am very concerned about the risk of a CBDC. President Biden issued an executive order early in his presidency instructing the Federal Reserve to study the creation of a central bank digital currency. And the New York branch of the Fed is actively working to do just that. I find that extremely dangerous.
We see China moving forward intent on using a CBDC to destroy all of Bitcoin’s value, to destroy anonymity, to destroy decentralization. Their purpose is the exact opposite of a distributed ledger system. They want a centralized ledger that the government has full visibility and control over. And I think that’s very dangerous.
I introduced legislation to prohibit the Fed or the federal government from establishing a CBDC. I don’t want the government to control your finances.”
Cruz says those in government who oppose Bitcoin are the same ones pushing for a CBDC because they don’t want to give up the ability to monitor and control people’s finances.
“By the way, the same people who want a CBDC, they hate Bitcoin and they hate cash. Let’s be clear. They don’t like cash for the very reason I like cash, because it’s not subject to centralized control. It is not under constant surveillance.”
The Republican senator says that if the US goes ahead with a CBDC, it should be for the US Congress to vote on the plan as they will be held accountable by voters.
“I hope we see growing resistance to a CBDC. I am very concerned that we will see, even in the next few years, the Fed rolling it out and not waiting for Congress to act. At the very least before we did a CBDC which as I said would be a terrible idea but if we did it Congress should at least make the decision that is elected by the people not the governors of the Federal Reserve who are not accountable to the American people merely by promulgating fiat a new form of currency.
Cruz also reveals that he invests in Bitcoin and currently owns “a little more” than two BTCs, saying he believes the king crypto is a store of value in times of inflation.
“I am incredibly excited and incredibly optimistic about Bitcoin… I think one of the attractions of Bitcoin, certainly for me, but for many, is as a hedge against inflation… I think it’s also powerful because it’s decentralized, because it’s much less susceptible to government scrutiny.”
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