US Congressman’s “Anti-Crypto Asset Corps” is the beginning of the politicization of crypto assets[Column]| coindesk JAPAN

With the United States entering the midterm election year, it is only a matter of time before crypto assets (virtual currencies) become a focal point of the election campaign.

Florida Governor Ron DeSantis, who is seen as a likely Republican presidential candidate, announced a bill on March 20 to ban the use of federally controlled central bank digital currencies (CBDC) in Florida.

Shortly after that, Republican Senator Ted Cruz, along with two other Republicans, launched a direct-to-consumer CBDC that could be used by the federal government as a financial surveillance tool. submitted a bill to ban the development of

Democratic Senator Elizabeth Warren tweeted that she would be forming an “Anti-crypto Army” from her campaign account.

If you thought crypto assets weren’t political, you were shattered. Crypto-assets are politicized.

as a political tool

DeSantis announced that the bill was to protect “Florida citizens from the weaponization of the financial sector through the CBDC by the Biden administration,” making crypto a political battle. “A centralized bank digital currency is for oversight and control,” argues DeSantis.

Instead of making it a battle between political parties, Cruz made it about the importance of financial privacy and the international dominance of the US dollar as a matter of national security. This is also the core of Senator Warren’s anti-crypto asset position, which is interesting. Warren’s efforts include a new anti-money laundering bill and a crackdown on sanctions evasion.

That’s why Democrat Rep. Warren’s anti-crypto corps seems so effective. With Republicans on board, Warren’s anti-crypto asset campaign looks more like a “for America” campaign than a left-leaning one.

A campaign like this would probably help Warren recruit more Republicans. It is seen as a means to prevent money laundering, and lawmakers should avoid being seen as supporting money laundering.

CBDC and privacy

The politicization of crypto assets is of particular interest with respect to CBDC and Bitcoin (BTC) in the context of the current banking crisis.

Warren is in favor of CBDC, saying in a TV interview last year:

“Instead of bitcoin, we can argue for a completely different type of digital currency, one that is government-sanctioned, electronically transferable in value, and[…]backed by value.”

He continued, “If you ask, can we improve in the digital world? Yes, but then try CBDC.”

Republican vs Democrat

If history is any guide, it will be a Republican vs Democrat issue if the CBDC becomes part of the political debate in this year’s race. Conservatives have already begun to articulate their anti-CBDC positions.

A CBDC would allow the government to monitor and censor ordinary law-abiding Americans.

Liberals will be pro-CBDC. Private cryptoassets enable money laundering and, like CBDCs, do not ensure government-guaranteed remedies.

Of course, the debate over CBDC should be bipartisan. If a CBDC allows unrestricted surveillance of financial transactions, preventing it should be a priority for all Americans. Because privacy is extremely important.

Bitcoin and cryptocurrency issues

The current problems in the banking industry have created another controversy around Bitcoin and crypto assets. But it’s not as clear-cut as CBDC. As banks fail, Bitcoin is emerging as a way out of the current system. The Fed’s failure to steer the economy is fueling this trend.

Republican Rep. Cruz loves Bitcoin and thinks leftists hate it. It cannot be controlled by a liberal government. But if Bitcoin is a way to break free from the banking system and the US dollar system, it can be seen as anti-American. This is a thorny issue.

In reality, the question about crypto assets being asked politicians during election campaigns will be “what are you going to use them for?”

And as soon as Democrats talk about CBDC, or any government-sanctioned digital currency, Republicans will call it anti-American for trying to spy on ordinary Americans.

On the other hand, if Republicans make favorable comments about Bitcoin, Democrats will criticize it as un-American, saying it threatens the hegemony, dominance and existence of the US dollar.

It’s probably not as clear-cut as it really is, but it’s definitely election season.

｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
｜Image: Democrat Rep. Warren vows to rally “anti-crypto legions” (Council Bluffs Town Hall 10/Wikimedia Commons)
｜Original: Sen. Warren’s ‘Anti-Crypto Army’ Is Just the Beginning of Crypto’s Politicization