05.07.202309:50 Forex Analysis & Reviews: US lawmaker describes CBDCs as tool for coercion and control.

Bitcoin has been hovering around its annual high for a while now, which could have a negative impact on its future growth prospects. Meanwhile, Ether has not hit its yearly high yet, but there has been more activity in regard to it recently compared to the world's flagship cryptocurrency. However, we will talk about these trading instruments shortly. For now, let's say a few words about the fact that more political figures in the United States are expressing criticism towards the Central Bank Digital Currency (CBDC), also known as the digital dollar, which the central bank plans to launch in the near future.

Warren Davidson, a member of the House Financial Services Committee, has criticized the launch of CBDCs. He believes that CBDCs turn money into a tool of coercion and said that there is no legitimate way to issue such currency without developing additional regulatory frameworks. He also referred to CBDCs as corrupted money.

Commenting on a recent article by the Cato Institute, which lashed out at the idea of CBDCs and listed the risks associated with their issuance. Davidson described CBDCs as a tool for coercion and control and said that fortunately, there is no way to implement CBDCs in the US without writing new legislation.

Davidson, who created the Sound Money Caucus promoting sound fiscal and monetary policies in the United States, explained that a bipartisan coalition in Congress is actively working to ban the development or implementation of CBDCs and expressed opposition to the introduction of such a tool without proper regulatory frameworks.

Davidson is not the only congressman who is concerned about the hypothetical issuance of a digital dollar in the United States. Just recently, we talked about Congressman Alex Mooney who introduced the Digital Dollar Pilot Prevention Act, aimed at closing any loopholes in the legislation regarding the issue. The bill was promoted as a tool that prohibits the Federal Reserve from creating, implementing, or approving a program to explore the feasibility of issuing a CBDC.

Economist Jim Rickards recently warned that the launch of a digital dollar could lead to the creation of a social credit system similar to China's. Presidential candidate Robert Kennedy Jr. also criticized the digital dollar, stating that it would allow the government to freeze assets or restrict spending if deemed necessary.

As for Bitcoin, it will likely be bullish as long as it trades above $30,640, with a potential bull run to $32,300. The most distant target is seen around $34,300, where traders could increasingly take profits, which could trigger a pullback in Bitcoin's price. If selling pressure increases and there is a breakout at $30,640, the focus will shift to the levels of $29,500 and $28,440. In case of a breakout through these marks, the target will stand at $27,390.

Meanwhile, ETH buyers should protect the nearest support at $1,920 and break through resistance at $2,028. Only if quotes reach $2,127, the bullish trend will continue and the ETH price will be able to surge to the $2,250 range. If selling pressure increases, a breakout through $1,924 will lead to a test of the $1,845 mark. The most distant target is seen at $1,776.