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Analyst: Bitcoin prices might soar above $51,000 in the short run owing to a short-term price spike.
Ted Cruz, a Texas senator who is a big fan of crypto, has proposed a law that would stop the Federal Reserve from selling certain products and services, including a digital currency that the Federal Reserve could use (CBDC).
In the bill, it says that "no Federal reserve bank may offer products or services directly to an individual, keep an account on behalf of an individual, or issue a central bank digital currency directly to an individual."
The bill, which was first proposed by Minnesota Rep. Tom Emmer, can now be debated by Congress because of Cruz's request.
As other countries, like China, start making digital currencies that don't have the benefits and protections of cash, it's more important than ever for the United States to make sure its digital currency policy protects financial privacy, keeps the dollar in the lead, and encourages new ideas." CBDCs that don't follow these three basic rules could allow the Federal Reserve to turn itself into a retail bank, get personal information on users, and keep track of their transactions indefinitely, Emmer said in a statement.
It would be "insidious" for people to have to open an account at the Federal Reserve in order to use a digital currency that was made in the United States. This would be like China's digital authoritarianism, the lawmaker said.
“Not only would this CBDC model centralize Americans’ financial information, leaving it vulnerable to attack, but it could also be used as a surveillance tool that Americans should never tolerate from their own government.”
The proposed bill comes after a bill put forward by Reps. Stephen Lynch (D-Mass.), Jess Chuy Garcia (D-Ill.), Ayanna Pressley (D-Mass.), and Rashida Tlaib (D-Mich.) that wants to create a digital currency called "eCash."
When Rohan Grey, a professor at Willamette University, was asked to help write a bill, he said that instead, it would be completely peer-to-peer, could be used offline, and be completely anonymous, like physical cash is today.
Nobody needs an ID to get cash, Grey said. The question is, "Why should we make them show their ID for digital cash?"
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