US Congressman Warren Davidson has raised serious concerns about central bank digital currencies (CBDCs), urging for their immediate ban and criminalization. Taking to Twitter on July 23, the congressman likened the Federal Reserve’s efforts in developing CBDCs to “building the financial equivalent of the death star,” highlighting his apprehensions about the potential authority and control a CBDC could grant the central bank.
CBDC Corruption Risks
Davidson’s worries extend beyond mere centralization of financial power. He also voiced fears that CBDCs could pave the way for corruption, turning money into a tool of coercion and concentrated power. To counter what he perceives as a significant threat, he called for swift congressional action to outright outlaw CBDCs, further insisting on punitive measures for any attempts to create, develop, or establish such digital currencies.
To back up his claims, Davidson provided a screenshot of a job posting from the Federal Reserve Bank of San Francisco on Indeed, which sought a senior crypto architect to work on CBDC development. The job listing served as a tangible example of the central bank’s intentions, solidifying the congressman’s urgency in taking precautionary steps against CBDCs.
This is not the first time Davidson has expressed reservations about CBDCs. Earlier, in a press release on March 21, he wrote a letter to his House colleagues, imploring them to prevent governmental efforts to promote CBDCs. His concerns revolved around the potential elimination of privacy and freedom associated with cash transactions, leading to a centralized currency model akin to China’s, and augmenting governmental control over people’s lives. In that letter, Davidson also encouraged his fellow legislators to engage with their state counterparts to prevent the normalization of CBDCs.
As the issue unfolds, it remains to be seen how Congress will respond to Davidson’s latest call for action and the potential implications it might have for the future of CBDCs and the broader cryptocurrency space. With growing interest and initiatives surrounding CBDCs worldwide, Davidson’s stance on this matter could spark significant debate and influence future policy decisions on the digital currency front.