Central bank digital currencies (CBDCs), according to US congressman Warren Davidson, should be outlawed and criminalized.
The congressman referred to the Federal Reserve’s initiatives as “building the financial equivalent of the death star” in a tweet on July 23. This suggests that he has serious reservations about the central bank receiving potential power and control from a CBDC.
Davidson also expressed his concern that a CBDC may encourage corruption, turning money into a tool of control and pressure. He urged Congress to take immediate action to outright ban CBDCs to tackle this alleged threat.
He also advocated for punishing any attempts to establish, build, develop, or test a CBDC.To substantiate his accusations, the Representative offered a screenshot of a job posting on Indeed from the Federal Reserve Bank of San Francisco.
The advertisement revealed the bank’s intention to hire a senior crypto architect to work on developing a CBDC, confirming Davidson’s concerns and emphasizing his urgency in taking preventative measures.
The congressman has already expressed his concerns about CBDCs. In a letter to his House colleagues, Warren Davidson reportedly pleaded with them not to allow the government to support CBDCs, according to a press release from March 21.
He worried in the letter that CBDCs would make cash transactions less private and free, leading to a centralized currency like the one used in China and increasing governmental control over people’s lives.
To stop the normalization of CBDCs, Davidson urged his legislative colleagues to contact their state counterparts. It is still being determined how Congress will respond to Warren Davidson’s most recent demand for action and its impact on the future of CBDCs and the larger cryptocurrency market as the events play out.
