Ted Cruz, along with countless other politicians, has expressed his disdain for CBDC in America, but what about pro-Bitcoin legislation?
Texas Governor Ted Cruz has joined a group of politicians supporting anti-CBDC legislation. reintroduction of law A proposal to the Senate to ban Federal Reserve-issued CBDCs issued directly to consumers.
The last few weeks have seen several US state politicians at the center of these actions. The trend appears to have been started by his Rep. Tom Emmer’s introduction of the “CBDC Anti-surveillance Act,” a bill that would prohibit the Federal Reserve from issuing his CBDC directly to anyone.
This was followed by South Dakota Governor Christy Nome’s decision to veto House Bill 1193, amending a provision of the state’s Uniform Commercial Code. “The bill adopts the definition of ‘money’ to specifically exclude virtual currencies. But these revisions include central bank digital currencies as money. These developments worry me for several reasons,” he said. explained.
Following this, Florida Governor Ron DeSantis held a press conference He stood on a podium entitled “Big Brother’s Digital Dollar” and declared Florida to be a CBDC-free state.
but, recently written articles Yael Ossowski writes for the Bitcoin Policy Institute, titled “In Trying to Block CBDC, State Rejects Legislation Ostensibly Supporting Bitcoin,” on how House Bill 1193 was blocked by Governor Nome. explained that it was actually beneficial for Bitcoin and not net negative. In his opinion, the response to House Bill 1193 did not sufficiently take into account changes to the Uniform Commercial Code. Politicians need to be careful not to block legislation that could benefit Bitcoin.
“The bill in question under the Uniform Commercial Code update not only expands the definition and protection of bitcoin, but also allows for self-management and actually establishes a legal mechanism for including the protocol in traditional lending, insurance, and commerce. create,” he writes. “Having CBDC bashing as the latest litmus test for conservative politicians is truly revolutionary and a positive phenomenon in terms of the personal and financial freedom Bitcoin offers. Why is the battle being fought over a rudimentary state code of commerce that has nothing to do with currency?”
Ossowski described the bill as “a back door for the CBDC and ultimately the federal government to control economic freedom” for conservatives. CBDC is assumed to be what governments certify as money because it gives a precise definition of money excluding Bitcoin. However, this is not necessarily the case, Ossowski said, and excluding Bitcoin within that definition is actually positive. “Not being defined as money means that bitcoin transactions are not recognized as sending money, which would otherwise require various licenses, permits and legal registrations,” he wrote. I’m here.
“Overall, this keeps the Bitcoin protocol outside the regulatory reach of restrictive rules that apply to fiat currencies like the US dollar.”
Ossowski also refers to the “Catawba Digital Economic Zone, a self-proclaimed Web3 Special Economic Zone made possible by law in the Catawba Indian Nation of Carolina.” In August 2022, it became the first sub-jurisdiction to adopt Article 12 of the Uniform Commercial Code.
They estimate that the bill would make Bitcoin’s legal foundation better, not worse.
“Unlike previous attempts to integrate digital assets under existing legislation, this amendment will define them directly within the UCC. The amendments approved on July 15th also address all major concerns about other related endeavors, including security controls, integrity, precedence, and storage issues. is forward-looking and technology-neutral.”Catawba Digital Economic Zone Approves Digital Assets Amendment to Uniform Commercial Code by Uniform Law Commission”
But Ossowski concludes that he understands why Governor Noem vetoed the bill. “Her understanding of the bill was flawed, but her instincts were right,” he said. “The same applies to her DeSantis mission to snipe the CBDC before she reaches the coast of Florida.”
He recommends that legislators who understand the merits of Section 12 to Bitcoin and wish to express their opposition to CBDC politically should simply write that statement in their version of the bill.
“For those of us who have been forced to this political crossroads, we cannot blame governors and lawmakers for wanting to raise the anti-CBDC flag,” he wrote. They need to be reminded that technical updates to the commercial legislation they bring are desirable and necessary.
Ideally, states should take CBDCs off the table forever, while adopting healthier model policies that help advance the purpose of decentralized digital cash in the form of Bitcoin. But our work is just beginning. ”