Tulsi Gabbard, a former presidential candidate and political commentator, is opposing the Biden administration’s proposal to create a Central Bank Digital Currency (CBDC) in the United States. According to the ex-congresswoman, CBDC could potentially become a tool for mass financial surveillance. In return, it could weaken our autonomy and freedom. Gabbard made this statement on Sunday, arguing the reconsideration of CBDC due to its potential consequences.
In a tweet shared over the weekend, Gabbard stated that the federal government has initiated the implementation of its CBDC project. This would lead to a cashless society where every transaction is monitored, tracked, and controlled. Gabbard called on citizens to reject this effort and stand united to protect their freedom.
CBDCs are a New Form of Restrictions
CBDCs are a new type of digital currency issued directly by central banks to retail customers, bypassing commercial banks. Advocates claim that it could provide a safer and more efficient method of payment and remittance. Furthermore, it will provide a secure central bank liability in the digital financial ecosystem.
Additionally, a May 2022 BIS report shows 90% of central banks are exploring the potential issuance of CBDCs. More than half of them are already developing the technology, including the United States. President Biden has also given “the highest urgency” to potential research into a US CBDC as part of his crypto executive order from March of last year.
Republicans in both the House and Senate, including Tom Emmer and Ted Cruz, are also opposing CBDCs due to their potential to eliminate cash and compromise consumers’ privacy. Tulsi Gabbard shared the same opinion on Monday, stating in an interview that CBDCs revolve around government-approved surveillance and control.
Gabbard expressed concern that CBDCs could monitor every purchase, from a stick of gum to an automobile. In contrast, Federal Reserve Chairman Jerome Powell claimed in September that if a CBDC were implemented, it would safeguard transaction privacy while also verifying user identities.
Closing Thoughts
In my personal opinion, CBDC although seemingly restrictive, has its goods as well. CBDC might be one of the best ways to stop money laundering and corruption. Furthermore, the government is already monitoring huge aspects of our digital life. So, we should look at the government’s execution of CBDC before making a judgment.
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