On Wednesday, Republican Senator Ted Cruz published a Bill that bans the Federal Reserve from issuing a central bank digital currency (CBDC) direct to the public. It’s a companion Bill to one published by Republican Congressman Tom Emmer in January. Earlier this week, Democrat Congressman Stephen Lynch released another digital dollar-related Bill.
Both sets of Bills focus on privacy, but the Democrat’s draft also emphasizes financial inclusion and aims to see digital dollar pilots conducted by the Treasury, not just the Federal Reserve.
The legislators are all concerned about privacy. While cash enables anonymity, we’re not aware of any governments that are willing to support an anonymous CBDC issuance out of concerns over money laundering. Some support the idea of enhanced privacy for smaller transactions.
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