US lawmaker says CBDCs are tools for coercion and control US lawmaker says CBDCs are tools for coercion and control
Congressman Davidson pointed out that Bitcoin (BTC) helps to solve transaction restrictions imposed by traditional financial institutions.
2 min read
Updated: Jul. 15, 2023 at 1:30 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
U.S. lawmaker Warren Davidson described Central Bank Digital Currencies (CBDCs) as a tool for coercion and control.
In a May 2 Twitter thread, Davidson said CBDCs were the antithesis of sound money, warning people to beware of any protocol working with central banks to build digital currencies.
Bitcoin is sound money
The lawmaker pointed out that Bitcoin (BTC) helps to solve transaction restrictions imposed by traditional financial institutions.
According to Davidson, Bitcoin’s permissionless and peer-to-peer features are essential components of sound money. He added that sound money was “essential to defending freedom.”
The pro-crypto lawmaker was commenting on a tweet from the CEO of real estate private equity firm Cedar Creek Capital, AJ Osborne. In his tweet, Osborne highlightedย the challenges he faced while trying to perform a basic transaction with a traditional financial institution.
Lawmakers criticize Whitehouse inconsistent approach to crypto regulation
In a May 1 letter, two U.S. lawmakers โ Warren Davidson and Mike Flood โ criticized the Whitehouse Council of Economic Advisers (CEA) handling of digital assets regulations.
Fox Business journalist Eleanor Terrett first shared the letter on Twitter.
According to the lawmakers, while Congress has been working on a regulatory regime allowing the industry to thrive, the President Biden Administration has been pushing digital asset innovation abroad.
They added that if the U.S. government’s approach toward the industry does not change, entrepreneurs would be forced to establish their businesses outside the country โ which would draw “capital and economic growth away from the U.S.”
The lawmakers specifically mentioned that the latest Economic report “represents a significant change in tone.” According to them, previous reports had underlined the importance of the U.S. staying at the forefront of the developments in the crypto industry.
However, the recent report asserts that “digital assets have brought none of the promised benefits.” The lawmakers noted that this statement is “patently untrue,” adding that:
“Digital assets and the technology that empowers them are showing their value and potential future value through numerous use cases.”
CryptoSlate reported that the report warned the U.S. Congress about enacting laws that would deepen the ties between the crypto industry and the broader financial system.
Besides that, the pro-crypto lawmakers questioned the council’s rationale on how the FedNow Instant Payment System and a CBDC would provide a better and more inclusive financial system than blockchain technology.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.