Why This U.S. Congressman Is Fighting Against A CBDC?

U.S. Congressman Warren Davidson who represents Ohio’s 8th District is urging his colleagues to fight back against a govt. Central Bank Digital Currency (CBDC). Today, in a letter the Congressman shared information on U.S. FED’s pilot programs across American States.

Is U.S. Govt. Favoring State Owned CBDC Over Other Digital Assets?

As per the letter shared by the congressman, the U.S. govt. is favoring use of state owned CBDC in private transactions as money. This will impact privacy and freedom of U.S. citizens in cash transactions. Essentially, a CBDC if used as money will sit in your bank accounts controlled and governed by FED.

His main concern is a recent attempt by the government to legalize CBDCs as money in Uniform Commercial Code (UCC) of all states.

A state owned CBDC will allow govt. to track and monitor each and every private transaction. Thus, making cash obsolete overtime.

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The congressman urged all other state representatives to oppose ongoing efforts to make CBDC a part of UCC as money. He calls the current version of U.S. CBDC very similar to Chinese version of centralized CBDC which is completely controlled by the Chinese govt.

One of the US congress governor in state of Florida has already passed a legislation to prohibit integration of CBDC as currency in UCC. Will more congressman follow?

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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com