Texas introduces bill to ban the digital dollar

Lawmakers pointed out the threat of “intrusive financial oversight” of US citizens

15.05.2023 - 14:20

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What’s new? Texas senators introduced a resolution to ban central bank digital currency (CBDC). Lawmakers noted that the digital dollar if created and issued, would create a direct relation between the Federal Reserve and consumers. This, in turn, could lead to an unprecedented level of government oversight and control over private money and transactions.

Resolution

What else does the document say? According to Texas senators, the central bank is not paying enough attention to privacy and cybersecurity issues when exploring the possibility of launching the asset. Given that CBDC involves centralized data collection, officials noted the risks that could arise if attackers gain access to the information. For example, vulnerabilities could be used to compromise the entire national financial system.

“The implementation of a CBDC would make countless US citizens more vulnerable to intrusive federal oversight and security threats,” the document says.

At the same time, CBDC concepts that include strategies to minimize these risks often reduce the asset’s transparency to regulators in monitoring illicit activity. As a result, policymakers opposed the creation and launch of the asset.

Earlier this month, two states, Florida and North Carolina, approved bans on the use and testing of the digital dollar.

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