Market news - Texas introduced a bill to ban the Central Bank Digital Currency.
- According to the draftees, CBDC is a bad idea.
On May 12, Texas announced that they were introducing a bill to ban the Central Bank Digital Currency (CBDC) in their state by the 88th legislature. According to the draftees, CBDC is a bad idea.
A Central Bank Digital Currency is the digital form of a country’s fiat currency. CBDC is a liability of the Federal Bank rather than a liability of commercial banks. Texas, a state in the south-central region of the United States, introduced a bill to ban CBDC.
The bill states the retail of CBDCs is issued to the general public, establishing a relationship between the Federal Reserve and the consumer. This may result in unprecedented levels of government surveillance and control over the individual’s cash holdings and transactions.
A government-controlled digital currency has become a trending topic among government officials, with many against the CBDC idea. This is not the first time a state has banned CBDC. Recently, Florida Governor Ron DeSantis banned CBDC within the state. Moreover, Senator Ted Cruz stated that the implementation of CBDC would be dangerous to society. In March, Ted Cruz introduced a bill to ban the Federal Reserve from adopting CBDC.
