Joe Biden’s plans for a Central Bank Digital Currency face opposition from US senators.

A group of five senators in the United States has teamed up to oppose the Biden administration’s plans to introduce a “digital dollar” by introducing a bill that calls for a ban on central bank digital currencies (CBDCs). On February 26, Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun introduced the CBDC Anti-Surveillance State Act, which challenges the Federal Reserve’s authority to implement a CBDC. The senators are concerned that the administration’s CBDC could be designed to monitor citizens and infringe on their freedom. Senator Cruz has called on Congress to clarify that the Federal Reserve does not have the power to implement a CBDC. The bill specifically aims to prohibit the use of central bank digital currency for monetary policy and to prevent the Federal Reserve from offering certain products or services directly to individuals. Senators Scott and Budd have emphasized the importance of protecting the financial privacy of US citizens. They argue that a CBDC could collect personal data and potentially freeze funds without justification. If the bill becomes law, it would require Congress to authorize any future issuance of a CBDC and prevent the Federal Reserve from becoming a retail bank. The legislation has gained support from five associations, including Heritage Action for America, the Blockchain Association, the American Bankers Association, the Independent Community Bankers Association, and the Club for Growth. In contrast, former President Donald Trump, who is running for the presidential election in 2024, has pledged to never allow the creation of an in-house CBDC. Trump credited Vivek Ramaswamy for drawing attention to the negative consequences of CBDCs.