Ohio Rep. Davidson proposes bill labeling CBDC as counterfeit money

Rep. Warren Davidson, R-Ohio, plans to introduce legislation that would classify central bank digital currency (CBDC) as counterfeit money. The lawmaker, who has served in the U.S. House since mid-2016, characterized the concept as "communist money for the digital age" during an interview with Fox News Digital. Davidson warned that a CBDC would allow the government to freeze or program individual funds, a scenario he described as dystopian rather than a feature. To illustrate the potential for discriminatory pricing, Davidson offered a hypothetical where a pickup truck driver pays $10 per gallon for fuel while a hybrid vehicle driver pays only $2 per gallon. He stated that while some view this programming capability positively, he intends to stop it. In a post on X last month, Davidson detailed his legislative intent, writing that designing a CBDC is equivalent to designing counterfeit plates and launching one constitutes counterfeiting. He called for prison terms for those involved in such activities. Davidson further argued that programmable money places the government between individuals and their assets, stating that access would require government permission. He labeled this development an existential threat to Western civilization. Although a section of the 21st Century ROAD to Housing Act, which became law earlier this year, currently prohibits the creation of a CBDC, Davidson noted that this ban expires on December 31, 2030. During the same Fox News Digital interview, Davidson discussed broader monetary policy, stating that sound money requires fiscal discipline and a monetary policy that does not grow the money supply disproportionately to the economy. While he expressed skepticism about reforming the Federal Reserve without ending it, he acknowledged there is a case for a central bank and advocated for an audit of the Fed. Davidson also addressed President Donald Trump’s proposal to distribute $5,000 to every American adult if Republicans win both chambers of Congress in the midterms. Davidson indicated he could support the measure if paired with spending cuts, suggesting that gutting Obamacare is among the most promising ways to fund it. He cautioned that injecting $5,000 per person into the economy would fuel inflation on its face.