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CONCURRENT RESOLUTION
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WHEREAS, The Federal Reserve is exploring the potential |
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benefits and risks of implementing a central bank digital currency, |
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but it has not given sufficient consideration to key issues |
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regarding privacy and cybersecurity; and |
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WHEREAS, A central bank digital currency (CBDC) is a digital |
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form of money that is a liability of the Federal Reserve, rather |
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than a liability of commercial banks; retail CBDCs are issued to the |
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general public, establishing a direct relationship between the |
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Federal Reserve and consumers; this could lead to unprecedented |
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levels of government surveillance and control over private cash |
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holdings and transactions; and |
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WHEREAS, A number of global leaders have expressed concern |
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about the threat of cyber risk to financial stability, and CBDC |
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vulnerabilities could be exploited to compromise a nation's |
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financial system; many CBDC proposals involve the centralized |
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collection of transaction data, which poses major privacy and |
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security risks, such as making it easier for intruders to access the |
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data of more users; however, proposals that include strategies to |
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minimize those risks often reduce transparency for regulators |
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seeking to detect money laundering, terrorism financing, and other |
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illicit activities; and |
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WHEREAS, The implementation of a CBDC would make countless |
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U.S. citizens more vulnerable to intrusive federal oversight and |
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security threats; now, therefore, be it |
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RESOLVED, That the 88th Legislature of the State of Texas |
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hereby express its opposition to the creation of a central bank |
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digital currency. |