Republican Senators Move To Block Federal Reserve From Issuing A CBDC

Sen. Ted Cruz, backed by the support of other GOP senators, warned that CBDCs will infringe on the financial privacy freedoms of the American people. (Credit: AFP)

KEY POINTS

• The proposed legislation wants to prohibit the use of CBDCs 'for monetary policy, and for other purposes'
• Cruz said Congress should 'clarify' that the Fed has no authority to implement a CBDC
• A Heritage economist that a CBDC could 'gut the U.S. dollar'

Several GOP senators have introduced legislation that could block the Federal Reserve's authority to implement a central bank digital currency (CBDC). President Joe Biden's government previously announced support for research on a potential digital dollar, but a group of Republican senators argued that such a move could infringe on financial privacy freedoms.