Central bank digital currencies (CBDCs) will be a significant fight heading into the next election cycle, especially in individual states.
Governors and state legislatures who claim they stand for economic and financial freedom must take a firm stand against CBDCs.
WLTR recently noted the legislation introduced in the North Carolina Legislature to combat CBDCs.
The Lone Star State has introduced similar legislation to ban the use of CBDCs.
JUST IN: 🇺🇸 Texas introduces bill to ban central bank digital currency (CBDCs) in the state.
— Watcher.Guru (@WatcherGuru) May 12, 2023
— Patrick Webb (@RealPatrickWebb) May 12, 2023
Texas is introducing a bill to ban a central bank digital currency (CBDC) in the state. The bill was introduced today by the 88th Legislature.
A central bank digital currency (CBDC) is a digital form of money that is a liability of the Federal Reserve, rather than a liability of commercial banks.
WHEREAS, The Federal Reserve is exploring the potential benefits and risks of implementing a central bank digital currency, but it has not given sufficient consideration to key issues regarding privacy and cybersecurity; and
WHEREAS, A central bank digital currency (CBDC) is a digital form of money that is a liability of the Federal Reserve, rather than a liability of commercial banks; retail CBDCs are issued to the general public, establishing a direct relationship between the Federal Reserve and consumers; this could lead to unprecedented levels of government surveillance and control over private cash holdings and transactions; and
WHEREAS, A number of global leaders have expressed concern about the threat of cyber risk to financial stability, and CBDC vulnerabilities could be exploited to compromise a nation's financial system; many CBDC proposals involve the centralized collection of transaction data, which poses major privacy and security risks, such as making it easier for intruders to access the data of more users; however, proposals that include strategies to minimize those risks often reduce transparency for regulators seeking to detect money laundering, terrorism financing, and other illicit activities; and
WHEREAS, The implementation of a CBDC would make countless U.S. citizens more vulnerable to intrusive federal oversight and security threats; now, therefore, be it
RESOLVED, That the 88th Legislature of the State of Texas hereby express its opposition to the creation of a central bank digital currency.