Ted Cruz (R-TX) – a crypto-supportive Republican senator – believes a US Central Bank Digital Currency (CBDC) is likely to become a reality.
The politician believes both the Federal Reserve and the White House currently want one, and that the Democratic party won’t vote against its issuance.
- In an interview published by What Bitcoin Did on Friday, Cruz discussed the current political climate surrounding crypto.
- In general, the senator believes Democrats are more opposed to the industry than Republicans, due to how it enables freedom. By contrast, Democrats are more tolerant of CBDCs than Republicans like himself, who view them as tools of control.
“If no democrats are willing to stop it, then congress can’t stop it,” he said. “I don’t see any realistic prospect of a democratic senate stopping the Fed from issuing a CBDC.”
- Cruz introduced legislation to ban the Federal Reserve from issuing a CBDC in March. Similarly, Canada’s new conservative leader Pierre Poilievre seeks to ban the introduction of a CBDC in his country.
- The senator believes a CBDC increases the ability of the government to track people’s financial transactions, which is appealing to Democrats. He cited a stipulation within President Biden’s Build Back Better plan, which would impose reporting requirements on all Americans for transactions of $600.
“I think that’s a horrible idea,” said Cruz. “One of the great attractions to collectivists on the left, of a CBDC, is they want the government to be able to know every single thing you’re spending money on.”