US Congressman Warren Davidson has taken a firm stance against Central Bank Digital Currencies (CBDCs) per his recent comments and actions. He is advocating not only for their complete ban but also for the criminalization of any effort to design, build, test, develop, or establish them.
According to a Tweet, Davidson’s concerns were made in response to a job advert posted by San Francisco’s Federal Reserve Bank seeking a senior crypto architect to work on a CBDC project. He argues that the Federal Reserve is designing a financial equivalent of a death star with its interest in CBDCs.
The Federal Reserve is building the financial equivalent of the Death Star.
Central Bank Digital Currency (CBDC) corrupts money into a tool for coercion & control.
— Warren Davidson 🇺🇸 (@WarrenDavidson) July 23, 2023
In recent years, CBDCs have gained traction as governments explore ways to modernize their monetary systems. While proponents argue that CBDCs offer greater efficiency, transparency, and financial inclusion, Congressman Davidson believes that these perceived benefits come at a steep cost of privacy and manipulation of the people’s money, unlike with cryptocurrencies.
CBDCs Could Disrupt the Current Financial Order
Davidson’s primary concerns revolve around the control that CBDCs would grant central banks and governments over their citizens’ financial transactions. As digital currencies operate on a centralized ledger, authorities could closely monitor and track every transaction, potentially jeopardizing individuals’ financial privacy.
As such, Davidson warns that such extensive surveillance could lead to an erosion of personal freedoms and a breach of financial sovereignty. Likewise, he worries about the potential for abuse and coercion by government entities. With CBDCs in place, the government could have the power to freeze or confiscate assets instantly, giving rise to scenarios of state overreach and undue influence.
The concerns raised by Davidson underscore the necessity for a thorough examination of their implications. Striking a delicate balance between innovation and protecting individual rights remains a crucial task for lawmakers and policymakers alike.
Recall that Davidson is not the only person revealing his stance regarding CBDC. Just recently, the Bank for International Settlements (BIS) study revealed over 90% of central banks actively exploring digital currencies although it noted that their design should be followed with caution to avoid any forms of risk.
Also, the US presidential candidate Robert Kennedy Jr criticized CBDCs. His concerns align with those of Florida Governor Ron DeSantis, who rallied against the notion of a CBDC in the state.