Warren Davidson slammed the idea of the digital dollar and calls to impose a ban on such kinds of innovations.
The United States of America (USA) is a very big power in the world. The last 50 years showed how the American economy surged rapidly, & with that dominance of the US dollar also surged. Over the last couple of years, the majority of the countries started their work on the central bank digital currency (CBDC) to modernise the existing traditional financial system & also give a better boost to the corresponding economy. Under peer pressure, the American Federal Reserve (Fed) is also studying & planning to develop CBDC, or say digital dollar, to maintain the dominance of the US dollar at the top of the world.
On 23 July 2023, Warren Davidson, US Republican Representative, shared his personal opinion on the digital dollar concept and said that the central bank is trying to create a tool to control the money.
According to Davidson the US Congress should interfere in this matter & impose a ban on CBDC development in America.
In response to another Tweet, Davison said that money should not be programmable and also the nature of money should remain permissionless for peer-to-peer transactions.
Furthermore, Davison indirectly said that such a CBDC adoption plan will not maintain the position of the US dollar as a store of value, instead it will make it worse.
FedNow, CBDC, & Criticism
Just a week ago, the US Fed launched FedNow, a new instant payment system.
Before the launch of FedNow, the majority of the people were comparing FedNow with CBDC and some people claimed that FedNow will allow the integration of the CBDC payment system.
Later following the criticism of potential CBDC integration, the US officials confirmed that they will not allow CBDC integration in FedNow and also confirmed that they will push the adoption of the FedNow payment system in the whole country across all the sectors i.e. retail to the Institutional level.