Warren Davidson Drafts Bill to Block Federal Digital Currency as Counterfeiting

A member of Congress is moving to ensure that the United States never implements a central bank digital currency, characterizing such a system as an existential threat to American liberty.

Representative Warren Davidson, Republican of Ohio, is preparing legislation that would classify any central bank digital currency as counterfeit money, making its creation a criminal offense. The congressman, who has represented Ohio’s eighth district since 2016, describes the concept as “communist money for the digital age.”

The proposed legislation would treat the planning, design, and launch of a central bank digital currency as conspiracy to counterfeit, counterfeiting, and the distribution of counterfeit currency respectively. Those involved would face criminal penalties, including potential imprisonment.

Davidson’s concerns center on the programmable nature of digital currency controlled by a central authority. In such a system, the government would stand between citizens and their money, granting access only with official permission. The congressman outlined a scenario in which fuel prices could be programmed differently for different citizens based on their vehicle choices, with pickup truck drivers paying $10 per gallon while hybrid drivers pay just $2 per gallon for the same fuel.

“Some people see this as a feature. I think it is dystopian,” Davidson stated. He emphasized his determination to prevent such a system from taking hold in America, viewing it as a fundamental threat to Western civilization.

The issue has gained urgency following the passage of the 21st Century ROAD to Housing Act earlier this year. While that legislation includes a temporary prohibition on creating a central bank digital currency, the ban expires on December 31, 2030. Davidson’s proposed measure would establish a permanent and far more stringent barrier.

Beyond the digital currency question, Davidson addressed broader monetary policy concerns. He emphasized that sound money requires fiscal discipline, noting that the nation cannot continue spending more than it collects in revenue each year. While not necessarily advocating a return to the gold standard, he stressed the need for a disciplined monetary policy that does not allow the money supply to grow disproportionately to the economy.

The Ohio congressman also weighed in on Federal Reserve policy, suggesting that the institution should at least face an audit. He indicated that while there may be a case for having a central bank, he questions whether the current Federal Reserve can be reformed without first being dismantled.

Regarding President Trump’s proposal to distribute $5,000 to every American adult if Republicans win both chambers of Congress in the midterm elections, Davidson indicated conditional support. He stated he could support such a policy only if paired with spending cuts sufficient to cover the cost, maintaining consistency with his emphasis on fiscal responsibility.

The proposed legislation reflects growing conservative concerns about government overreach and the potential for technology to enable unprecedented control over citizens’ economic activities. As digital payment systems become increasingly prevalent, the debate over whether the federal government should create its own digital currency continues to intensify among policymakers and citizens alike.