House Republican Warren Davidson Plans Bill to Regulate Central Bank Digital Currency

Rep. Warren Davidson, R-Ohio, announced his intention to introduce legislation targeting central bank digital currencies (CBDCs), which he characterized as "communist money for the digital age." Davidson, who has served in the House since mid-2016, expressed strong opposition to the concept in a recent interview with Fox News Digital.

Davidson described potential dangers associated with CBDCs, including the government's ability to "freeze your money" or program it with restrictions. He illustrated a hypothetical scenario where individuals could be charged different prices for the same goods based on factors like their vehicle type, calling such a system "dystopian."

In posts on X, formerly Twitter, Davidson elaborated on his concerns. "I'm drafting a bill to regulate Central Bank Digital Currency (CBDC) as counterfeit money," he wrote. He further stated, "Launching CBDC? Counterfeiting. Prison for counterfeiters and their accomplices. No CBDC!" In another post, he warned that programmable money would place the government "between you and your money," restricting access and posing an "existential threat to western civilization."

While a provision within the 21st Century ROAD to Housing Act enacted earlier this year temporarily prohibits the creation of a CBDC, this ban is set to expire on December 31, 2030.

Davidson also discussed his views on sound money, emphasizing the need for fiscal discipline and a monetary policy that aligns money supply growth with economic expansion. He suggested that the Federal Reserve should be audited and questioned whether the current institution could be reformed without being eliminated.

Regarding a proposal from former President Donald Trump to distribute $5,000 to every American adult if Republicans gain control of Congress, Davidson indicated he could support it if paired with significant spending cuts. He noted that while such a distribution could fuel inflation, it could potentially be funded by measures like overhauling healthcare spending.