Florida Governor Ron DeSantis seeks to ban CBDCs

Key takeaways

• Florida’s governor has proposed a legislature that would prohibit the use of CBDCs.

• The governor claims that the use of CBDCs would stifle innovations in Florida. 

• President Biden’s administration is currently studying the advantages and risks of using CBDCs. 

Ron DeSantis wants to ban the use of CBDCs

Florida Governor and possible Republican U.S. presidential candidate Ron DeSantis has submitted a new legislative proposal in his state that would prohibit the use of a national central bank digital currency (CBDC) as money within the state. 

In a press release submitted on Monday, DeSantis claims that the use of CBDC in the state would stifle innovation as the Biden administration is seeking to weaponise the national digital currency. 

The governor wrote;

“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.”

The State Chief Financial Officer, Jimmy Patronis, added that;

“Governor DeSantis is ahead of the curve when it comes to protecting individual rights. A Central Bank Digital Currency is the cornerstone of a federal government that could track each and every transaction that happens in the world. There would be no privacy, and if there is no privacy, there are no rights. In the same way, Florida is fighting back against the IRS, we need to fight back against this program. It’s how we protect freedom, liberty, and prosperity.”

The US government is studying the risks and uses of CBDC

The proposed law seeks to prohibit the use of a CBDC issued by any central bank in other parts of the world. DeSantis’s statement calls on other states to also adopt similar legislation.

This latest cryptocurrency news comes after President Joe Biden issued an executive order for the federal government to study the possible uses and risks of a CBDC in 2022. 

There are privacy concerns regarding the use of CBDCs. DeSantis also added that the CBDC would diminish the role of community banks and credit unions. 

The United States is not the only state that is currently studying the use and risks of CBDCs. Several countries around the world, including Nigeria, China, The Bahamas, and Sweden, have launched their CBDCs.