Warren Davison is a Republican congressman from the state of Ohio. He serves as a ranking member of the Financial Technology Task Force and recently took part in two panels at the Miami Bitcoin Conference where he discussed the prospects of a central bank digital currency and what it should offer its users.
Davidson On the Status of Blockchain Tech
He says that any kind of digital currency should always offer security, privacy, and everything else that fiat provides. In a recent interview, he discussed his role with the task force and what the organization can potentially do for bitcoin and blockchain technology in the future. Davidson said:
The FinTech Task Force is a temporary subcommittee on the House Financial Services Committee. Its purview includes most emerging technologies in finance and the goal is to provide regulation and oversight that helps America maintain its position as the country that attracts innovators and entrepreneurs. Payment systems are facing dynamic innovation. Cryptocurrencies – and blockchain more broadly – show some of the greatest promise for revolutionizing finance and the way we live and so play a role in how the task force considers the future of finance.
Contrary to so many other analysts and alleged industry experts, Davidson is convinced that the blockchain space needs solid regulation if it is to ever expand and jump beyond where it is today. He believes that government agencies need to step in and make sure that the crypto space follows set rules to keep both businesses and traders safe. He comments:
We absolutely need a regulatory regime to clarify cryptocurrencies. The status quo is regulation by enforcement, where companies find out they have violated SEC regs when they get a demand letter. This uncertainty discourages investment in the United States. Clarifying regulations would give the US more of an advantage, because right now crypto investors are building their companies in other countries with more certainty. We want investment, innovation, and operations here. Regulatory clarity is also essential to protect consumers and investors. The absence of clear policy or regulation is being exploited by fraudsters, so failure to act is failing average consumers and investors.
These Stimulus Bills Aren’t Helping
Aside from his stance on bitcoin and digital currency technology, Davidson was also quick to take a stab at the status of the U.S. dollar. He says it is no longer sound money given the amount of stimulus bills Congress has produced. This, he says, has led to inflation because the government is spending more than what lenders can give. He states:
The Federal Reserve and Congress are destroying the value of the U.S. dollar and jeopardizing its status as the global reserve currency by spending more money than anyone will lend. To close this gap, the Fed is simply creating more money [and] increasing the supply of money.