• Senator Ted Cruz is strongly against the idea of a central bank digital currency (CBDC) entering the fray.
• He believes a CBDC would bring about an end to bitcoin and its decentralized values.
• Cruz is concerned that government regulations could spy on users if a CBDC was used nationally.
Senator Ted Cruz Against CBDC
Republican Senator from Texas Ted Cruz has made it clear 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. In his statement, he mentioned that China intends to use its CBDC to “destroy all value of bitcoin, to destroy anonymity, to destroy decentralization” and worries that Joe Biden’s executive order directing the Federal Reserve to study creating one could make this happen as well.
Effects of CBDC
Central bank digital currencies go against everything bitcoin and its initial altcoin counterparts are going for; being decentralized forms of payment for individuals across the globe who can gain access with only needing a wallet and an internet connection. If these banks were in control they would decide who had access instead of miners or developers. It would also give way for new governmental power such as regulators around the world being able to spy on us and see what we were using our money for, ultimately destroying crypto industry as we know it today.
Cruz Worried About Possible Outcomes
Ted Cruz is very worried about the potential effects this currency could bring forth if issued nationally by everyone as it would make bitcoin less unique which he fears will lead to becoming virtually obsolete; thus destroying all that cryptocurrencies stand for – freedom from government control over our finances. He stated “I think that’s exceptionally dangerous…I’m very concerned about the risk of a CBDC.“
The Intended Purpose
Originally, cryptocurrencies were designed to serve as decentralized forms of payment where anyone with access to an internet connection could be able use them without government intervention or control but with central banks in play this notion will no longer be possible due their ability to decide who gains access or not based on their own protocols and regulations .
Conclusion
Senator Ted Cruz does not want any sort Central Bank Digital Currency (CBDC) entering into circulation as he believes it will have a negative impact on Bitcoin and other cryptocurrencies including ending anonymity, decentralisation which goes against its original purpose which was offering people financial freedom free from government control or intervention .