US lawmakers continue to express opposition to CBDC development.
Highlighting an ongoing and intense debate surrounding Central Bank Digital Currencies (CBDCs), US Representative Warren Davidson has criticized these initiatives, recommending an outright ban and criminalization of their development.
On July 23rd, Davidson, a Republican Congressman, shared his hardline views on social media platform Twitter.
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In the Twitter thread, Davidson cautioned that the Federal Reserve was constructing a financial device that could lead to coercion and control, likening it to a "Death Star."
The Congressman further urged for prompt legislative action against any endeavors concerning CBDCs:
Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a CBDC.
This critique came after San Francisco's Federal Reserve Bank announced a need for a “senior crypto architect” to contribute to a CBDC project.
In his tweets, the Congressman highlighted that a currency should act as a stable store of value and should not be programmable by a central entity. Davidson further stated that transactions involving "sound money" should "facilitate permission-less peer-to-peer transactions."
The Federal Reserve's active exploration of potential digital dollar technology has stimulated considerable debate, despite no formal decision on the matter.
Davidson is not alone in the battle against CBDCs. Florida Governor and presidential hopeful Ron DeSantis has also expressed reservations claiming that he would “nix any central bank digital currency” if he was to become president. Earlier this year, DeSantis enacted legislation that limited the use of CBDCs within his state.
Echoing these concerns, Republican Tom Emmer issued warnings about state-controlled digital currencies. Emmer argued that a programmable CBDC could transform into a surveillance tool potentially used to suppress politically unsavory activities.
To combat this potential overreach, earlier this year, Emmer presented the CBDC Anti-Surveillance State Act. This bill aimed to stop any violation of Americans' financial privacy by Washington's unelected officials. This proposal secured an endorsement from Texas Senator Ted Cruz, who presented his own legislation to restrict CBDCs in March.
Following the wave of concerns regarding the launch of CBDCs, the future of this development remains a hot topic for debate.
