Earlier this month President Joe Biden signed a sweeping executive order regarding cryptocurrency assets such as Bitcoin.
While his administration contends the move is needed to protect consumers and a method of cutting down on illegal financial activities, critics say it represents an attack on freedom.
One critic of the move is Heartland Institute executive editor and research fellow Justin Haskins, who laid out his objections this weekend in a piece written for Fox Business.
Among Haskins’ complaints is that Biden’s order calls for “the highest urgency on research and development efforts” towards creating a central bank digital currency (CBDC).
It also implores the Federal Reserve chairman to “develop a strategic plan for Federal Reserve and broader United States Government action, as appropriate, that evaluates the necessary steps and requirements for the potential implementation and launch of a United States CBDC.”
Haskins insists that this new government-back digital dollar “could substantially reduce individual rights and give the Federal Reserve and the national government significantly more power over the U.S. economy.”
According to Haskins, this represents “a truly remarkable and deeply troubling development” as introducing a CBDC “would dramatically expand the power and influence of the federal government and Federal Reserve.”
That’s because a CBDC “would likely be programmable, meaning that it could be designed so that Americans could only use it for specific purposes.”
This means that banks and government agencies would have the power “to track digital dollars and the people using them, unlike printed U.S. dollars available today.”
Bad news for investors
Even some Democrats have begun to voice concerns over Biden’s crypto policies, and they include the Obama administration’s former Acting Assistant Treasury Secretary Gregory Zerzan.
Zerzan told Fox Business host Maria Bartiromo recently that the executive order will have the effect of stifling cryptocurrency investing.
He said, “It takes a top-down government-run approach that asks every federal department from the EPA [Environmental Protection Agency] to the Department of Justice to Homeland Security to figure out how they can regulate crypto.”