Representative Mike Haridopolos (R-FL) described the idea of a central bank digital currency (CBDC) as "evil" in a recent appearance on Fox Business's Bottom Line during a discussion about the ongoing debate over cryptocurrency legislation.
For additional context, twelve Republicans voted against a procedural vote for three bills related to cryptocurrency. Two key bills, the GENIUS Act and the Anti-CBDC Surveillance State Act, were of concern to the dozen Republicans, arguing that the legislative language does not adequately protect against the creation of a central bank digital currency (CBDC).
As host Dagen McDowell noted, a CBDC would allow the Federal Reserve to track Americans' spending and could potentially be weaponized, to which Rep. Haridopolos agreed.
"CBDC, as you described perfectly, is a bad idea," said Rep. Haridopolos, adding, "It is the government tracking your spending, potentially blocking you from spending on different items, maybe even literally letting your money expire. CBDC is an evil thing, and we are going to stop it in its tracks."
The Florida Congressman further emphasized that such a system could only arise if Congress allowed it to, prompting McDowell to ask how it could.
"I think what has happened is that some people are looking into what is called the GENIUS Act," Haridopolos answered, "There is some concern that people think there could be a backdoor way to get a CBDC through the GENIUS Act."
However, while he acknowledged the concern, he suggested it is "a little bit unfounded."
As a result, McDowell pointed out that the GENIUS Act "creates a legislative framework for the establishment of stablecoins," which are dollar-backed cryptocurrencies, but does not constitute a CBDC.
Haridopolos said McDowell "nailed it," and that "this is not a fed-backed dollar stablecoin. This is an independent, third-party stablecoin, and we do not want to have a centralized currency."
"We know how the Chinese manipulate their own citizens by using their type of digital currency," the Florida Congressman concluded, "We do not want to go in that direction."
