The United States has been working on its own CBDC after the Biden-led administration developed policy objectives in 2022.
The governor of Florida, Ron DeSantis, is proposing a law that seeks to ban the use of central bank-issued digital currencies (CBDCs) in the state. According to a press release, the governor explained that the legislative proposal is being floated to protect residents and businesses within the state. DeSantis also suggests that the Biden administration is trying to exercise some form of surveillance and control with the CBDC technology. Part of the statement reads:
“Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a ‘centralized digital dollar’, which will stifle innovation and promote government-sanctioned surveillance.”
Florida Governor Cites Privacy Concerns Related to CBDCs
DeSantis, who’s widely considered as a possible presidential candidate in next year’s elections, maintains that there is an agenda by the Biden administration to weaponize the financial sector. And that some of these policies may be threatening the personal economic freedom and security of his people.
Echoing the Republican governor’s sentiments, Florida state CFO Jimmy Patronis also shared his views on the subject. Patronis claims that governments may use CBDCs to track every single transaction that happens in the world in such a way that privacy will be completely lost. According to Patronis, “there would be no privacy, and if there is no privacy, there are no rights.”
Other than the privacy concerns though, DeSantis also believes that a CBDC will undermine credit unions and community banks. Hence, the reason behind pushing the new bill is to ensure that the privacy of all Floridians and that of their businesses are well protected.
The governor has also called on other states to emulate his move by adopting similar legislation.
Different Strokes for Different Folks
Meanwhile, Florida’s move is in direct contrast to that of South Dakota Governor Kristi Noem. The Republican recently vetoed a commercial code bill on the possibility of allowing CBDCs to be considered legal currency in the state. Although the bill has now passed the state legislature, some national Republican groups are still opposing it.
The United States has been working on its own CBDC after the Biden-led administration developed policy objectives in 2022. While the Federal Reserve has been researching a potential digital dollar, the Treasury Department is also reportedly weighing the risks and benefits of a CBDC.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
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