By: Parker, Kolkhorst S.C.R. No. 8
SENATE CONCURRENT RESOLUTION
WHEREAS, The Federal Reserve is exploring the potential
benefits and risks of implementing a central bank digital currency,
but it has not given sufficient consideration to key issues
regarding privacy and cybersecurity; and
WHEREAS, A central bank digital currency (CBDC) is a digital
form of money that is a liability of the Federal Reserve, rather
than a liability of commercial banks; retail CBDCs are issued to the
general public, establishing a direct relationship between the
Federal Reserve and consumers; this could lead to unprecedented
levels of government surveillance and control over private cash
holdings and transactions; and
WHEREAS, A number of global leaders have expressed concern
about the threat of cyber risk to financial stability, and CBDC
vulnerabilities could be exploited to compromise a nation's
financial system; many CBDC proposals involve the centralized
collection of transaction data, which poses major privacy and
security risks, such as making it easier for intruders to access the
data of more users; however, proposals that include strategies to
minimize those risks often reduce transparency for regulators
seeking to detect money laundering, terrorism financing, and other
illicit activities; and
WHEREAS, The implementation of a CBDC would make countless
U.S. citizens more vulnerable to intrusive federal oversight and
security threats; now, therefore, be it
RESOLVED, That the 89th Legislature of the State of Texas
hereby express its opposition to the creation of a central bank
digital currency.