Warren Davidson, U.S. representative and part of the House Committee on Financial Services, has disregarded issuing a central bank digital currency (CBDC) in the country. Davidson explained that CBDCs corrupt money into a “tool for coercion” and detailed that there was no legal way of issuing such a currency without legislation.
U.S. Representative Warren Davidson: CBDCs ‘Corrupt Money’
Warren Davidson, a U.S. representative for the state of Ohio and a member of the House Committee on Financial Services, has revealed its stance on central bank digital currencies (CBDCs) and the possibility of issuing a digital dollar in the country.
Commenting on a recent article published by the Washington-based Cato Institute, where the institution criticizes the idea of CBDCs and lists the risk associated with their issuance, Davidson stated:
Central bank digital currency (CBDC) corrupts money into tool for coercion & control. Thankfully, there is no legal way to implement CBDC in America without legislation.
Davidson, who launched the “Sound Money Caucus,” which promotes sound fiscal and monetary policy in the United States, explained that “a bipartisan coalition in Congress is working to actively ban CBDC development or implementation.”
The Move to Avoid a Digital Dollar in America
Davidson is not the only congressman worried about the hypothetical issuance of a digital dollar in the U.S. In May, Congressman Alex Mooney introduced the Digital Dollar Pilot Prevention Act to close any regulatory loopholes on this issue.
The bill was advertised as an instrument that would “prohibit the Federal Reserve from establishing, carrying out, or approving a program intended to test the practicability of issuing a CBDC.”
The July slated launch of Fednow, a payments system for banks and credit unions, has ignited worries about its relation with the digitalization of the U.S. dollar. However, the Federal Reserve has denied these allegations, stating that Fednow “is neither a form of currency nor a step toward eliminating any form of payment, including cash.”
Others have also railed against the effects of a Fed-issued CBDC. Economist Jim Rickards recently warned about how tissuing a digital dollar could support creating a China-like social credit system. Presidential Candidate John F. Kennedy Jr. referred to this topic, stating that a “CBDC tied to digital ID and social credit score will allow the government to freeze your assets or limit your spending to approved vendors if you fail to comply.”
What do you think about U.S. Representative Warren Davidson’s stance on CBDCs? Tell us in the comments section below.
