Texas Senator Ted Cruz has introduced a bill that will ban the FED from adopting a CBDC. Cruz is known for its recent attempts to protect the rights of the Bitcoin community. This bill is coming at a time when Texas is becoming one of the most Bitcoin-friendly states in the US. For your information, a CBDC – short for a Central Bank Digital Currency – goes totally against the ethics of Bitcoin. That is why politicians and regulators who are pro-Bitcoin are strongly against the adoption of CBDCs. This move is seen as the most recent step of Cruz’s long journey towards transforming Texas into a Bitcoin and blockchain hub.
The bill, which is titled the “Protecting Americans’ Privacy Act,” seeks to protect the privacy of American citizens. Through this bill, Cruz aims to prohibit the Federal Reserve from creating or even adopting any Central Bank Digital Currency. According to the Senator, the move is necessary to protect the fundamental human rights of the American people.
The federal government has no authority to unilaterally establish a central bank currency,… The bill goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom — not stifling it.Texas Senator Ted Cruz
Some are suspecting that this bill came after the White House mentioned the risks of cryptocurrencies and Bitcoin in its annual economic report. The report spread a lot of Fear, Uncertainty, and Doubt (FUD) in the crypto market. Not only that, but it also endorsed the idea of adopting a CBDC. So, the White House claims that, while the technology used by Bitcoin is great, it should be centralized and overseen by the government. Senator Ted Cruz has been vocal about his opinions on the FED several times, arguing that the organization lacks transparency.
Texas Towards Becoming A Bitcoin & Blockchain Hub
In recent months, Texas is becoming one of the most Bitcoin-friendly states in the United States. There are reports stating that Texas is one of the best destinations for mining Bitcoin. Not only that, but Texas lawmakers are constantly working towards introducing pro-Bitcoin bills. Just recently, Texas proposed a bill that would protect the rights of Bitcoin holders, miners, and developers.