“Money shouldn’t be controlled by a central authority,” argues Republican Representative Warren Davidson, who has publicly expressed his objection to central bank digital currencies (CBDCs). He has called upon Congress to not only ban but also criminalize the creation of these digital currencies. Davidson likened the Federal Reserve’s interest in developing a CBDC to constructing a financial “Death Star,” a tool for coercion, control, and the corruption of money.
Davidson’s comments were prompted by a job listing from the Federal Reserve Bank in San Francisco seeking a “senior crypto architect” to work on a CBDC initiative. He responded to a Twitter user’s comment by stating that money should serve as a reliable store of value and not be manipulated by a central authority. He further advocated for permission-less peer-to-peer transactions.
As the Federal Reserve continues to explore the potential of a digital dollar, there hasn’t been a firm decision whether to issue one. The concept of a digitized U.S. dollar has led to contentious discussions and is likely to be a prominent topic in the upcoming presidential race.
Davidson isn’t the only voice of disapproval against a possible digital dollar controlled by the Federal Reserve. Florida Governor and U.S. presidential candidate Ron DeSantis announced earlier in July that he would reject any CBDC if he were to become president. He already enacted a law limiting the use of CBDCs in Florida in May. Similarly, Republican Tom Emmer also cautioned that a state-controlled digital currency could easily be used as a surveillance tool, stifling activity deemed politically unacceptable. Both Emmer and Texas Senator Ted Cruz have introduced respective bills in an attempt to safeguard the financial privacy of Americans.