Senator Ted Cruz Warns of CBDC: Don’t End Bitcoin’s Freedom
• Ted Cruz, a Republican Senator from Texas, is against the idea of central bank digital currencies (CBDCs).
• He believes that CBDCs will reduce the value of Bitcoin and privacy.
• Cruz is concerned about the risk that CBDCs can bring to modern and free world.
Senator Ted Cruz Opposes CBDCs
Republican Senator from Texas Ted Cruz says 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.
Why Does Senator Cruz Dislike CBDC?
In a recent statement, Cruz said the following about CBDCs: We see China moving forward with the intention of using a CBDC to destroy all value of bitcoin, to destroy anonymity, to destroy decentralization. Joe Biden, early in his presidency, issued an executive order directing the Federal Reserve to study creating a CBDC, and the New York branch of the Fed is working on doing exactly that. One can understand his fear. Central bank digital currencies go against everything bitcoin and its initial altcoin counterparts are going for. Initially, they were all designed to serve as decentralized forms of payment for individuals across the globe. Those who couldn’t gain access to products and services in the traditional financial arena could gain them through bitcoin, which only needs a wallet and an internet connection to function and be transferable. However, with central banks in the mix, these notions would ultimately become null and void. These banks would be the ones issuing the currencies in question, not miners or developers. They would decide who could use them and who would gain access to them. These currencies would destroy all that the first cryptocurrencies stood for and bring about an end to crypto industry as we know it. In addition, CBDCs would likely give rise to new wave of government power where regulators around world are able spy us what we do with our money .
Concerns About Risk
Cruz thinks CBDCs are wrong for modern free world where people have freedom over their own money management .When discussing how a CBDC could be used against people through government protocols ,he stated „I think that’s exceptionally dangerous .I’m very concerned about risk of CDBC „.He also thinks if CDBC become national currency then value Bitcoin will reduced as it becomes less unique without much difference between other CDBC’s .
Cruz Is Trying To Keep The Danger Out
Ted cruz is trying his best keep danger out by opposing CDBC but it won’t be easy task as Joe Biden already issued executive order directing Federal Reserve study creating this currency .So there might some chances this thing happen while affecting overall crypto industry negatively .
To conclude , Ted Cruiz is opposed idea Central Bank Digital Currencies (CDBC’s )as they may cause loss privacy ,decentralization & anonymity which were main part why Bitcoin was created in first place .He is confident this will reduce value Bitcoin & will lead way new wave government power so keeping danger out seems like tough job but someone got fight it !!