Generations near and far have trusted the American dollar as a symbol of security and freedom. It’s a means of exchange, representing the backbone of our national financial system.
Yet, as reliable as it seems, a new conversation in Washington is raising fundamental questions about the future of money. As a result, policymakers now examine the possibility of a digitized U.S. dollar, commonly referred to as a Central Bank Digital Currency (CBDC).
The central bank issues a CBDC as a digital currency, offering a public option in the financial landscape. Unlike cryptocurrencies, a CBDC aims to reduce costs for transactions and enhance payment systems.
Advocates see CBDCs as modern currency, but critics fear they could alter the citizen–government relationship. Put simply, CBDCs could give leaders the power to monitor every American payment in real time. Though designed as gateways to financial oversight and control, concerns remain about impacts on fundamental human freedom.
In practical terms, giving the federal government visibility into how citizens spend and save would establish a clearer link between citizens and the state. While today, banks often work with private intermediaries to manage an individual’s money, a CBDC would otherwise open this door.
Still, Igor Volovich, Executive Director of Strategy at America First Technology Infrastructure & Innovation Institute (America First Tech), underscores the realities of this shift: “A Central Bank Digital Currency (CBDC) is not just a technical evolution—it’s a constitutional inflection point. If designed without hardwired privacy protections, a CBDC could enable government overreach, allowing real-time surveillance of every American’s financial activity and the power to freeze, redirect, or deny access to funds based on political or ideological grounds.”
Overall, the implications are heavy. A supervised financial system not only diminishes the strength of the dollar, but hinges on the principles embedded within it. The dollar’s dominance is rooted in trust, but if the U.S. diverges from traditional ideals, it risks global erosion of its economic leadership.
Beyond the loss of the dollar, CBDCs pose additional threats. Concerns like an erosion of financial choices could limit what kind of purchases are allowed. A CBDC could also bring major influence to the Federal Reserve, undermining private financial institutions and reshaping the credit system.
Volovich adds that these dangers mirror problems Americans have already seen with existing controls: “We’ve seen what happens when government agencies abuse financial access—this isn’t speculation, it’s precedent. America’s financial system must reflect our founding values: freedom of association, protection from unwarranted search, and due process. Those principles cannot be retrofitted later—they must be embedded at the protocol layer.”
At the same time, abandoning the CBDC altogether would position America at a competitive disadvantage. Countries like the Bahamas, Jamaica, and Nigeria have already launched CBDCs, while there are currently 49 pilot projects around the world looking to explore the digital asset. America, by contrast, is an outlier amongst its peer central banks.
For a CBDC to succeed, the U.S. must embrace digital currency carefully, embedding constitutional protections. Benefits like faster cross-border payments and wider access matter only if liberty is safeguarded.
The debate over CBDCs continues to surface leaders in Washington. For the U.S. to lead digital infrastructure, lawmakers must base decisions on constitutional values, trust, and sovereignty.
In this new wave of digital currency, the U.S. has a chance to lead by example. Are we ready for it?
