• US Rep. Warren Davidson has criticized CBDCs, advocating for permissionless P2P money instead.
• He urged the government to ban and criminalize any activity related to designing, building, developing, or testing CBDCs.
• The Fed has been researching on a government-backed CBDC – digital dollar – which has stirred controversies in the country.
US Rep. Warren Davidson Criticizes CBDCs
Republican Representative Warren Davidson of Ohio’s 8th District has spoken out against Central Bank Digital Currencies (CBDCs), arguing that they should be banned and criminalized by the government. In response to a job posting from the San Francisco Federal Reserve Bank for a “senior crypto architect” to work on a CBDC project, Davidson accused the Fed of “building the financial equivalent of the Death Star” and called for swift action against any efforts towards building or testing such currencies.
Advocates Permissionless Peer-to-Peer Money Instead
Davidson believes that money shouldn’t be programmable by a central authority, advocating instead for permissionless peer-to-peer (P2P) transactions as an alternative to CBDCs. He noted that money should act as a stable store of value and an efficient means of exchange, not as a tool for surveillance, coercion and control.
Digital Dollar Scope Fades
The Federal Reserve had been looking into creating its own digital currency – digital dollar – but this move has stirred controversy in the United States. Despite this research continuing, it appears that its scope is fading due to opposition from some legislators like Davidson.
Davidson’s Previous Actions Against CBDC
This isn’t the first time that Davidson has spoken out against potential U.S.-backed digital currencies; in March he wrote a letter urging his colleagues to fight back against them and protect citizens’ freedom when making cash transactions from state interference through such currencies. Additionally he introduced legislation to fire SEC Chair Gary Gensler in April citing previous abuses as his motivation behind his actions then too.
Conclusion
It remains to be seen whether US legislators will heed Warren Davidson’s call and take action against any attempts at creating Central Bank Digital Currencies or if they will allow their development despite concerns over privacy and control over citizens’ finances being raised by some parties like him