Senate Reintroduces CBDC Anti-Surveillance State Act to Safeguard Financial Privacy

The CBDC Anti-Surveillance State Act has been reintroduced in the Senate with bipartisan support from U.S. Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun. Aimed at curbing the Biden administration’s efforts to issue a central bank digital currency (CBDC), the bill seeks to prevent potential infringements on citizens’ financial privacy and freedoms. Cruz, who initially introduced the legislation in 2022 and again in 2023, emphasized the need to clarify that the Federal Reserve lacks authority to implement a CBDC, voicing concerns over government surveillance of personal spending habits.

The proposed legislation prohibits the Federal Reserve from issuing a CBDC directly to individuals or indirectly through financial institutions, as well as from utilizing a CBDC for monetary policy purposes without congressional authorization. Endorsed by various organizations including Heritage Action for America, the Blockchain Association, and the American Bankers Association, the bill underscores bipartisan efforts to safeguard financial privacy amidst growing concerns over government overreach. With an equivalent bill introduced in the House of Representatives and support from numerous lawmakers, the initiative is a concerted effort to prevent the creation of a CBDC that could potentially undermine Americans’ privacy and autonomy.