The Battle for Financial Freedom: States Lead the Charge Against a Centralized Digital Dollar
The fight for sound money is gaining momentum, and it’s not just happening in Washington – states are stepping up to defend the financial liberties of their citizens in the face of a potential central bank digital currency (CBDC). While conservative voices on the national stage have vowed to bring responsible monetary policy to the federal government, states are proving to be the true champions of financial freedom, pioneering a movement for decentralized financial sovereignty.
The Republican National Committee (RNC), in a landmark move, recently released a draft proposal for platform changes that explicitly oppose a CBDC, also known as a digital dollar, and champion the right to mine, own, and transact privately in digital assets like Bitcoin. This shift in the party platform echoes the sentiment of influential Republican figures like former President Donald Trump and Vivek Ramaswami, who have both publicly endorsed digital assets while vehemently opposing the implementation of a CBDC.
Even independent presidential candidate Robert F. Kennedy Jr. has adopted a similar stance, recognizing the threats posed by a CBDC to individual freedom and financial security.
While the national debate on these issues is relatively new, states have already been engaged in this struggle for some time. Idaho, for example, was the first state to incorporate pro-digital asset and anti-CBDC language into its Republican party platform.
In the 2024 legislative session, Idaho considered two bills aimed at upholding these platform commitments but ultimately fell short, facing close votes in both the House and Senate. This setback highlights the ongoing challenges faced by states pushing for sound money policies.
However, other states have tasted success in recent years. Florida, for instance, has passed legislation specifically banning CBDCs. Meanwhile, North Carolina and Arizona considered similar legislation, though it ultimately failed to pass.
However, a number of states have already passed legislation to defend fundamental rights related to digital assets. These include:
- Wyoming: A leader in crypto regulation, Wyoming has passed a number of measures to create a welcoming environment for blockchain businesses.
- Montana: Passed legislation recognizing cryptocurrency as legal tender, demonstrating their willingness to embrace digital assets.
- Arkansas, Oklahoma, and Louisiana: All passed bills affirming the right to mine, purchase, and use Bitcoin, providing legal clarity and fostering an ecosystem encouraging innovation.
The need for these state-level actions is driven by a confluence of concerns. The first is the ever-growing influence of private banks in shaping the financial landscape. Many banks are increasingly engaging in a form of cultural warfare, debanking individuals and businesses that don’t align with their ideological agendas.
This practice has targeted a range of populations, including:
- Religious organizations: Numerous banks have severed ties with religious groups, citing concerns over their faith-based beliefs and teachings.
- Firearms manufacturers: Banks have refused to provide financial services to companies involved in the firearms industry.
- Non-green industries: Financial institutions have targeted industries deemed "un-green" by their standards, regardless of the potential economic and societal impact.
Debanking is a concerning trend as it can have devastating consequences for individuals and businesses, particularly in a heavily digitalized economy.
The second concern is the erosion of financial privacy. The federal government has been increasingly asserting its ability to access and monitor citizens’ transaction histories without a warrant, infringing on the Fourth Amendment of the US Constitution.
The proposed CBDC only intensifies these concerns. The possibility of a digitally controlled currency, in the hands of the federal government, represents an alarming prospect for increased surveillance and control. Programmable issuance, use, and taxation features of a CBDC could grant unparalleled power to the government, allowing manipulation and control over every aspect of financial activity.
This heightened control comes at a time when the government’s own management of the current financial system is under scrutiny. The hidden tax of inflation, fueled by excessive borrowing and printing, is eroding the purchasing power of citizens and undermining the stability of the dollar.
States are taking a proactive approach to address these issues, recognizing the need to protect the financial liberties of their constituents. They are pushing for sound money policies that prioritize individual financial sovereignty and strive for a more secure, stable, and free financial system.
Even if broader, federal-level changes occur, the need for state-level action remains. States that have not yet introduced sound money policies should seize this opportunity to safeguard their citizens’ finances.
Idaho, in particular, is well-positioned to join this movement. With neighboring states Montana and Wyoming already implementing pro-cryptocurrency legislation, Idaho has a clear path forward.
A comprehensive sound money policy for Idaho should include:
- Rejecting the notion of a CBDC as legitimate money and banning cooperation with the Federal Reserve’s implementation of such a system.
- Defending the right to mine, own, and freely transact in digital assets, including Bitcoin.
By taking these steps, Idaho can empower its citizens to reclaim control over their finances and opt out of a system that threatens to erode their freedom.
The momentum for sound money is spreading, driven by the increasing awareness of the threats posed by a centralized, digital currency. If states continue to lead the way, the fight for financial freedom will become a powerful force for positive change, ensuring a future where control over our finances rests in our own hands.
