Republican Senator Ted Cruz from Texas proposed a bill to prevent the Federal Reserve from creating a central bank digital currency (CBDC) for consumer use, citing concerns over financial privacy and the potential centralization of Americans’ financial information.

The bill, co-sponsored by Senators Braun (R-Ind.) and Grassley (R-Iowa), aims to prioritize financial privacy, uphold the U.S. dollar’s dominance, and encourage innovation in U.S. digital currency policies.

According to Cruz and his supporters, CBDCs pose the risk of transforming the Federal Reserve into a retail bank, gathering sensitive user data, and indefinitely tracking individual transactions.

The bill aims to promote entrepreneurship, innovation, and individual freedom while preventing the centralization and control of cryptocurrencies.

During the Texas Blockchain Summit 2022, Cruz touted the benefits of crypto mining for Texas’s energy supply, claiming that Bitcoin’s excess capacity could help stabilize the state’s electricity grid. He also revealed that he makes weekly investments in Bitcoin, calling it an opportunity for financial independence and prosperity.