Concerns raised that the introduction of CBDC could transform the United States into a "surveillance system"

On January 1st, concerns about Central Bank Digital Currencies (CBDC) are rising in the U.S. political sphere. U.S. Congressman Warren Davidson recently issued a strong warning, stating that the government’s push to introduce CBDC could lead to excessive control over the financial system. According to his remarks, CBDC could become a dangerous tool that restricts citizens’ financial freedom, going beyond mere technological innovation.

The Risks of CBDC Warned by U.S. Politicians

Congressman Warren Davidson pointed out through X Forum that the current U.S. financial system is rapidly tilting toward a permission-based, strict regulatory framework. He argued that the original promise of cryptocurrencies as “private money that anyone can freely use” has been undermined by recently passed regulatory bills. In particular, he criticized the Geniuses Act, which centers around stablecoins, as a prime example of increased control.

Problems with Permission-Based Financial Regulatory Systems

What concerns Davidson most is the potential misuse of the financial system as a tool for “surveillance, coercion, and control” if CBDC is fully implemented. He noted that the proposed regulatory framework is designed to strengthen government control over all financial transactions. Under a permission-based system, there is a significant risk that individuals’ freedom to manage and use their assets could be severely restricted.

The Link Between Digital Identity Verification and Financial Control

A more serious issue is the scenario where CBDC is combined with digital identity verification systems. If digital identity verification becomes mandatory in the future, Americans might need government approval to use their national currency. This would mean complete monitoring and restriction of personal financial activities by the government, effectively transforming the country into a surveillance state. Davidson emphasized the urgent need for legal measures to prevent this scenario from becoming a reality.