In the United States, the CBDC project is at the center of many debates. Issuance of a central bank digital currency indeed worries a number of US officials. We quote Warren Davidson in particular, who is mixed between the potential benefits of the CBDC and the problems related to the protection of privacy and financial freedoms.
The CBDC in the United States: a tool of financial coercion?
Warren Davidson is a U.S. Representative from the State of Ohio. He is also a member of the House Financial Services Committee. Recently, he spoke on the CBDC show in the United States.
“CBDCs corrupt money by making it a tool of coercion”he said on Twitter. According to Davidson, there is indeed no legal means to set up such a currency without appropriate legislation.
At the origin of “Sound Money Caucus”Davidson said thata bipartisan coalition actively working within Congress to prohibit the development and implementation of the CBDC.
Ongoing concerns about the digitization of the US dollar
Davidson Warren isn’t the only U.S. representative to raise questions about the CBDC. Others also wonder about the potential effects of a CBDC issued by the FED.
Such is the case of the economist Jim Rickards who warns against the creation of a social credit system similar to that of China. He outlines how issuing a digital dollar could facilitate such an evolution.
Presidential candidate Robert F. Kennedy Jr. has also expressed concerns. According to him, a CBDC would allow the United States government to freeze individuals’ assets. But not only ! It would also have the possibility of limiting expenditure in the event of non-compliance.
These concerns have intensified with the planned July launch of FedNow. It is a payment system for banks and credit unions. Admittedly, the FED denies any relationship between FedNow and the CBDC. Nevertheless, some concerns persist about the potential implications of this development.
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