Texas is introducing a bill to ban central bank digital currencies (CBDCs) in the state. The bill was introduced today by the 88th Legislature.
Central bank digital currency ( CBDC ) is a form of digital currency that is regulated by the Federal Reserve, not by commercial banks.
According to those drafted, the bill details why a CBDC is a bad idea. “Retail CBDCs are issued to the public, establishing a direct relationship between the Federal Reserve and consumers,” the bill reads. “This could lead to unprecedented levels of government oversight and control over private cash holdings and transactions.”
A government-controlled digital currency has been a hot topic among government officials, with many opposing the idea of issuing a CBDC. Recently, Florida Governor Ron DeSantis officially banned Central Bank Digital Currency (CBDC) in the state.
Additionally, Senator Ted Cruz has also shared his distrust towards CBDCs. He recently stated that deploying central bank-issued digital assets would be “extremely dangerous” to society.
“Many CBDC proposals involve centralized transaction data collection, which poses major privacy and security risks, such as making it easier for intruders to access the data of multiple users. more users. However, proposals that include strategies to mitigate those risks often reduce transparency for regulators looking to detect money laundering, terrorist financing, and other illicit activities. other legal. The implementation of the CBDC will make countless US citizens more vulnerable to intrusive federal surveillance and security threats.”
Texas Senator Ted Cruz previously introduced a bill in March to ban the Federal Reserve from adopting a central bank digital currency.