The State of Texas has announced that it stands against the Federal Reserve’s plans to introduce a central bank digital currency, citing the possibility of unprecedented levels of government surveillance and control as reasons for its stance.
This announcement was made in a bill made available to the public by the 88th Legislature of the State of Texas on May 12, 2023. The bill was titled “Expressing opposition to the creation of a central bank digital currency” with SCR No. 25.
Ted Cruz introduces anti-CBDC bill
In a related move, Texas senator Ted Cruz declared his stance against central bank digital currencies (CBDCs) in no uncertain terms, introducing legislation prohibiting the Federal Reserve from issuing a CBDC directly to any consumer.
While introducing the bill, Senator Cruz maintained that the federal government has no authority to “unilaterally establish a central bank currency.” With the bill’s introduction, he aims to force the government to allow cryptocurrency to thrive in the United States rather than stifle its growth.
The bill received support from many senators, including Senator Braun, who opined that centralizing Americans’ financial information and allowing the federal government to control and surveil it unilaterally is “simply a bad idea.”
Texas isn’t the first state against CBDCs
While Texas is relatively early to the party with this trend, it’s not the first state to announce plans to ban central bank digital currencies, as Florida governor Ros DeSantis proposed a bill to ban CBDCs nearly two months ago.
In response to the proposition, the Florida Senate voted 34-5 in favor of the ban, with the House voting 116-1 the same way. The legislation defines a CBDC as any digital currency or monetary unit of account issued by the US Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system made directly available to a consumer.
Texas to include digital currency usage in Bill of Rights
In similar legislation to prevent the US government from stifling consumers’ rights to hold digital currencies, Texas lawmakers recently voted overwhelmingly to amend the state’s Bill of Rights to include the rights of citizens to own, hold, and use cryptocurrencies.
This development, in conjunction with the anti-CBDC bill, will ensure Texans can hold cryptocurrencies without excessive regulation or fear of government surveillance.