US Congressman Warren Davidson recently expressed his strong stance against the expanding realm of Central Bank Digital Currency (CBDC). Davidson is alarmed by the eagerness some digital currency holders, like those of Ripple’s XRP, have shown toward Ripple’s newly introduced CBDC plan.
Ripple, the platform which fuels XRP, initiated a venture recently to provide a framework to central banks, governments, and financial institutions for issuing their own digital currency. The implications are massive as this technology could be used to manage every single phase of a CBDC’s life cycle. Ripple’s bold stride was met by cold scepticism by Davidson who emphasised that CBDCs potentially corrupt money into a manipulative tool for coercion and control.
Viewing these centralised digital currencies as diametrically opposed to sound money principles, Davidson informed the public on another occasion that he’s striving to pass a legislation that, if enacted, would criminalise any creation, development, or implementation of a CBDC. This suggested law would thereby extinguish anyone’s plans of fashioning a CBDC, regardless of the individual’s identity or prominence in the cryptocurrency community.
Engulfing Davidson’s intense opposition are his potent words likening CBDCs to the “financial equivalent of the Death Star”. Such ground shattering metaphor conjures an image of impending danger for all digital assets because he believes many misinterpret Bitcoin and other cryptocurrencies as being similar to CBDCs.
To further engage the public, Davidson conducted a poll on his Twitter account querying XRP holders about their perspective on Ripple’s CBDC venture. More than half of the respondents did not express major concern or interest about Ripple’s advancement into the CBDC landscape. Yet, others challenged Davidson’s viewpoint, defending that CBDCs can be more than just a control mechanism and can be beneficial for welfare and unemployment solutions.
Clearly, Davidson isn’t the lone voice against digital currencies minted by centralised institutions. Other lawmakers like Tom Emmer have also cautioned that a state-controlled digital money could potentially infringe on citizen’s privacy by being a “weapon to spy” on US citizens.
The rapidly advancing technology of blockchain has thrust such uncharted issues to the forefront requiring careful deliberation and regulatory guards in the pursuit of a harmonious crypto future. Whether CBDCs are viewed as a revolutionary monetary evolution or a disquieting power play barely masked by a facade of progress, the implications ripple far beyond the digital realm.
Source: Cryptonews
