Ohio Republican Rep. Warren Davidson on Tuesday warned his colleagues against a mounting push for a central bank digital currency (CBDC) that he says poses a threat to American privacy.
In a letter to his fellow lawmakers, Davidson called attention to an “international effort across governments to pursue a central bank digital currency (CBDC)” and noted an existing pilot program under the Federal Reserve that he said would “eradicate the privacy and freedom inherent in cash transactions.”
Davidson warned that advocates of a CBDC seek to amend the Uniform Commercial Code at the state level to widen the definition of “money” and potentially enable a government digital currency.
The GOP lawmaker highlighted two proposed changes, including the creation of a “controllable electronic record” that would make it easier for creditors to accept Bitcoin and other cryptocurrencies in transactions. The second change would be to create a carveout in the definition for electronic records that the government created, which Davidson asserts would enable a CBDC.
“Collectively, these changes create…