Senator Ted Cruz Really Doesn’t Want a CBDC in Play

Republican Senator from Texas Ted Cruz says he doesn’t want a digital dollar or any central bank digital currencies (CBDCs) entering the fray. He believes they’ll bring about an end to bitcoin, a cryptocurrency he has a lot of respect and admiration for.

Ted Cruz Is Confident a CBDC Would Hurt BTC

In a recent statement, Cruz said the following about CBDCs:

We see China moving forward with the intention of using a CBDC to destroy all value of bitcoin, to destroy anonymity, to destroy decentralization. Joe Biden, early in his presidency, issued an executive order directing the Federal Reserve to study creating a CBDC, and the New York branch of the Fed is working on doing exactly that.

One can understand his fear. Central bank digital currencies go against everything bitcoin and its initial altcoin counterparts are going for. Initially, they were all designed to serve as decentralized forms of payment for individuals across the globe. Those who couldn’t gain access to products and services in the traditional financial arena could gain them through bitcoin, which only needs a wallet and an internet connection to function and be transferable.

However, with central banks in the mix, these notions would ultimately become null and void. These banks would be the ones issuing the currencies in question, not miners or developers. They would decide who could use them and who would gain access to them. These currencies would destroy all that the first cryptocurrencies stood for and bring about an end to the crypto industry as we know it.

In addition, CBDCs would likely give rise to a new wave of governmental power. Regulators around the world would be able to spy on us and see what we were using our money for. They could look in on our activities and potentially get in the way anytime they wanted.

Cruz thinks CBDCs are wrong for a modern and free world. When discussing how a CBDC could be used against people through government protocols, he stated:

I think that’s exceptionally dangerous. I’m very concerned about the risk of a CBDC.

Trying to Keep the Danger Out

He is also very confident that a CBDC used nationally by everyone would make bitcoin less unique, and thus cause the father of all crypto to become virtually obsolete. He has no doubt that the issuance of a digital dollar or other CBDC would cause the currency to lose all its value. He said:

The same people that want to see a CBDC, they hate bitcoin, and they hate cash. Let’s be clear: they don’t like cash for exactly the reason I like cash because it is not subjected to centralized control that is not subject to constant surveillance.

In 2022, Cruz submitted legislation that if passed, would prevent the establishment of a digital dollar in America.

Tags: bitcoin, CBDC, Ted Cruz