United States Republican Representative Warren Davidson has expressed strong opposition to central bank digital currencies (CBDCs), urging Congress to ban them and criminalize their development. In a tweet on July 23, Davidson accused the Federal Reserve of creating a financial equivalent of the “Death Star” with CBDCs, arguing that they can be used as tools for coercion and control.
Davidson believes that money should be a stable store of value and should not be programmable by a central authority. He emphasized that sound money should enable permissionless peer-to-peer transactions.
The Federal Reserve has been actively researching the potential for a digital version of the U.S. dollar but has not made any final decisions on issuing one. The idea of a CBDC has sparked controversy in the country and is likely to be a significant topic of discussion in the upcoming presidential election.
Other prominent figures within the Republican Party share Davidson’s concerns regarding a Fed-controlled digital dollar. Florida Governor and U.S. presidential candidate Ron DeSantis stated that he would reject any central bank digital currency if elected president. In May, DeSantis signed a bill limiting the use of CBDCs in the state.
Congressman Tom Emmer has also voiced warnings about state-controlled digital currencies, expressing concerns that a programmable CBDC could be used as a surveillance tool to stifle politically unpopular activities. Emmer introduced the CBDC Anti-Surveillance State Act in February to prevent unelected bureaucrats from infringing on Americans’ financial privacy. Texas Senator Ted Cruz endorsed the bill and introduced his own CBDC-blocking legislation in March.
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