Congress Republican Calls for Prohibition of Central Bank Digital Currencies
He said that CBDCs may taint cash, turning it into a means of compulsion and control.
Recently, Republican Representative Warren Davidson of the United States spoke out against the idea of central bank digital currencies (CBDCs), calling on Congress to outlaw their creation and any associated initiatives.
Rep. Davidson tweeted on 23 July that the Federal Reserve was building something he compared to the terrifying “Death Star” from the Star Wars story.
Davidson stressed the need of passing legislation prohibiting the creation, development, testing, and installation of CBDCs to confront this perceived danger.
Instead, he stressed that trustworthy currency should make it possible for people to buy and sell directly with one another, without going through any third parties.
The Federal Reserve has been investigating CBDC technology with an eye on releasing a digital version of the U.S. dollar shortly.
However, there have been no final choices taken. The potential for a digital dollar to be used in the forthcoming presidential election has generated much debate.
Concerns about digital money regulated by the Fed are shared by many, not only Representative Davidson. Florida Governor and Democratic presidential candidate Ron DeSantis has promised to shut down digital currencies issued by the federal government if he is elected president.
In May, Governor DeSantis signed a measure limiting access to CBDCs in Florida. Tom Emmer, another Republican, has also raised concerns about the dangers of government-issued digital currency.
In March, he voiced worry that a CBDC that could be programmed for monitoring and to prohibit actions considered politically unfavourable would be readily abused.
Emmer presented the CBDC Anti-Surveillance State Act in February as a response, to stop unelected DC bureaucrats from invading Americans’ financial privacy.
Texas Senator Ted Cruz, who in March presented his legislation to ban CBDCs, has expressed his support for this measure.
With politicians holding divergent views and the subject having serious ramifications for the U.S. economy, the topic of CBDCs continues to be a divisive one in American politics.
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