• Republican U.S. Representative Warren Davidson has called for Congress to ban and criminalize central bank digital currencies (CBDCs).
• According to Davidson, CBDCs corrupt money into a tool for coercion and control, and money should not be programmable by a central authority.
• U.S. presidential candidate Ron DeSantis and Congressman Tom Emmer have echoed similar warnings over the potential implications of a state-controlled digital currency.
Congressman Calls To Ban Central Bank Digital Currencies
Republican Representative Warren Davidson has spoken out against central bank digital currencies, urging Congress to ban them and criminalize their development. In a July 23 tweet, Congressman Davidson accused the Federal Reserve of “building the financial equivalent of the Death Star”, stating that CBDCs corrupt money into a tool for coercion and control, adding: “Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a CBDC”.
Federal Reserve Advertises For Senior Crypto Architect
Davidson’s comments came in response to a position advertised by San Francisco’s Federal Reserve Bank for a “senior crypto architect” to work on a CBDC project. The Federal Reserve is researching the technology for a potential digital dollar but has not made any decisions on whether to issue one yet.
Other Politicians Warn Against Fed Controlled Digital Dollar
Republican Tom Emmer has also been vocal in his warnings about state-controlled digital money, saying in March that it could be “easily weaponized” as an spying tool with political implications. Similarly, U.S presidential candidate Ron DeSantis said he would “nix any central bank digital currency” if elected president in May this year when he signed a bill restricting the use of CBDCs in Florida state.
“Money Should Not Be Programmable By A Central Authority”
In response to criticism from Twitter users about his stance on banning CBDCs, Davidson argued that money should be a stable store of value and should not be programmable by a central authority – “Sound money should facilitate permission-less peer-to-peer transactions,” he added.
The possibility of having an official digital version of the U.S dollar is stirring controversy among lawmakers who are warning against its implications and potential misuse as weapons with political motives or as tools for surveillance purposes.