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Defi News Agency

Tuesday, Feb 07, 2023

Defi News Agency

Tuesday, Feb 07, 2023

Senator Ted Cruz believes that the Central Bank Digital Currency (CBDC) are an incredibly dangerous idea


Texas Senator Ted Cruz bullish on Bitcoin and against the CBDC. / Adobe Stock

In a conference broadcasted this past Monday hosted by the think tank Heritage Foundation, called ‘Bitcoin and the American Experiment,’ the junior United States Senator for Texas, Ted Cruz gave a keynote before answering a couple of questions and leaving the stage to a panel of experts consisting of Sen. Cynthia Lummis, Founder and CEO of Custodia Bank Caitlin Long and MicroStrategy CEO and world famous giga-Chad Michael Saylor.


This event was presented by the Heritage Foundation aiming to provide deeper understandings of how Bitcoin (BTC) fits into the values and ethos of the U.S. as well as the various opportunities this technology offers Americans, and how it could disrupt several facets of life, perhaps the single greatest positive disruptive innovation in our lifetimes.


Dr. Kevin Roberts, president of the Heritage Foundation prefaced the audience,  “Bitcoin, as we all know, is a free market technological revolution with the potential to replace centrally planned currencies, like the dollar, and act as a backbone to a decentralized economy where bureaucrats don’t call all the shots.”



Ted Cruz: Bitcoin is so appealing


In his introductory remarks, Cruz said that he is bullish on Bitcoin, wanting to show how Texan politics are friendly when it comes to this topic, “I believe in Bitcoin. I want Texas to be the oasis on planet Earth for Bitcoin and crypto.”


He then proceeded to speak about how Bitcoin is acting as a hedge on inflation for Americans and people in less fortunate economies around the world and discussed several advantages.

– Bitcoin as a hedge on inflation. Given the capped supply of bitcoins it is the opposite of fiat currencies, where central banks keep on making the printer go “BRRRR.”
-Positive impact of Bitcoin mining operations over the grid because they would not only avoid climate damage by transforming excess natural gas that normally gets flared, into a medium of storing energy and value, but are able to do so from “minute one.” Besides the fact that mining operations can be turned off to level the rig’s output when emergencies occur that require power to flow to users, like last winter when Texans were left to fend the cold without power for days.
– Speed and cost of transactions. Being faster and cheaper than current fiat transactions that take hours or even days with the current legacy systems.
– Global accessibility to Bitcoin anywhere. Cruz said that this is most useful in parts of the world where there is no access to banking or a secure store of value, now people can access value globally stored on the Bitcoin chain.
– It is free from any centralized influence or control (decentralized) and that’s what scares some governments, referencing how with the latest truckers protests in Canada, Trudeau froze bank accounts but couldn’t do anything about Bitcoin donations.


He touched on the bullying that El Salvador is receiving from the IMF and central banks about their decision to make Bitcoin legal tender in the country and how it could affect how countries deal with Bitcoin adoption in the near future.


However, he’s more worried that the current administration could listen to Elizabeth Warren and end up wreaking havoc instead of promoting innovation.

Why China Banned Bitcoin


Cruz said, “And then there is the advantage of the freedom. There’s nobody in charge! That terrifies government decision-makers. Pause for a second and reflect on why communist China has banned Bitcoin. The answer is real simple, they can’t control it. They don’t like something they can’t control.”


Cruz went on this last topic of freedom and decentralization to transition into talking about CBDCs and stated that it is the reason why China banned Bitcoin. Communist China fears Bitcoin because they can’t control it and that’s why they banned it.


That’s also the exact same reason why China started rolling out their own Central Bank Digital Currency, because a CBDC allows the communist regime more control over the people, reasserting a monopoly on currency.


“Uncontrolled decentralized currency is terrifying for those who want control of currency.” Answering one of the two questions he was asked, he replied on the topic of a U.S. Backed digital currency, “I think [a] CBDC is a horrific idea, incredibly dangerous idea, the exact opposite of what bitcoin and crypto promise.”


He casually mentioned his Bitcoin investment last year and revealed that he’s modestly dollar-cost averaging into crypto these days.


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