The evolving landscape of digital currencies brings together perspectives from many voting groups. From conservative, small-government voters to progressive, anti-establishment advocates, many Americans are bullish on digital assets. However, as governments explore the implementation of Central Bank Digital Currencies (CBDCs) or other forms of regulated digital currencies, crypto advocates are vocal in expressing their concerns, and skepticism.

CBDCs are digital assets that use blockchain in a similar way to Bitcoin or Ethereum. However, CBDCs are also owned and controlled by the government. Because digital assets are completely trackable and transparent, many fear a government issued digital currency would threaten financial autonomy.

Many in the crypto community fear the actions of figures like Fed chair Jerome Powell and SEC chair Gary Gensler. They suspect politicians and government officials who have an investment in protecting the financial system status quo will work to impose greater strictures on cryptocurrencies. They also fear the potential of these figures to push a government controlled digital currency, despite their claims that the U.S. has no such plans.

Why Americans Like Decentralized Currencies

The traditional banking system in the United States, sometimes called “TradFi,” is often viewed through a lens of skepticism and distrust. Many Americans mention private banks and the Federal Reserve in relation to corruption, lack of transparency, and political scandals. A growing number of Americans suspect TradFi institutions of being complicit in unethical behavior.

Cryptocurrencies like Bitcoin, on the other hand, are seen by some as a potential antidote to the corruption and inefficiency of traditional banks. The decentralized nature of cryptocurrencies promises a level of transparency and freedom from central authority. This appeals to Americans who are disillusioned with conventional financial systems.

However, this optimism can sometimes be tempered by volatility in crypto markets and regulatory uncertainty in the U.S. for digital currencies. Many who view the Federal Reserve, the SEC, and the IRS negatively voice concerns about government overreach. Crypto supporters often cite these agencies as a key reason for their support of decentralized finance.

The traditional banking system is highly regulated, which portends providing a level of security and protection for consumers. However, many voters view this regulatory framework as overly bureaucratic, slow to adapt to new technologies, and exploitative of Americans’ finances.

In contrast, the relatively unregulated nature of cryptocurrencies presents both an opportunity and a risk. Many say the appeal lies in crypto's innovation and the promise of financial sovereignty.

American Views of a Potential CBDC

Much of the crypto community prioritizes privacy and sovereignty over government sponsored consumer protections. These advocates, often supporters of privacy-focused coins like Monero, perceive CBDCs as tools for enhanced government surveillance.

Pro-crypto voters argue a state issued digital currency would erode financial privacy by enabling real-time tracking of individual transactions. Privacy advocates vocally resist and criticize the potential implementation of CBDC.

Many are also skeptical about involving regulatory bodies like the SEC in the crypto space. Recent controversies around figures like Gary Gensler and Joe Biden have fueled distrust. Many believe regulatory bodies unfairly favor certain crypto projects who play ball with regulators and stifle genuine innovation.

Crypto has a strong base among libertarians who advocate for minimal government intervention in personal finances. There are also many anti-establishment Democrats and progressives who want to oppose big banks and promote financial inclusion. Across political divides, crypto voters see blockchain assets as tools for financial freedom and decentralized ownership. CBDCs, being state controlled, are seen as antithetical to these ideals.

Democrats Emerge as Adversaries to Crypto Voters

Democrats take a cautious approach towards cryptocurrency, often advocating for strict regulations. They emphasize the need for robust regulatory frameworks, which the claim will protect consumers. Democrat politicians express a desire prevent financial crimes and ensure the benefits of crypto are equitably distributed. However, this stance is often diametrically opposed to the principles of sovereignty and ownership that many in the crypto community subscribe to.

Republicans are widely perceived as more pro-crypto than Democrats. They tend to view blockchain technologies as an embodiment of free-market principles and innovation. They are more likely to advocate for a regulatory environment fostering growth and minimizing government interference. For this reason, even Democratic crypto voters voice support for pro-crypto Republicans.