Florida Governor Ron DeSantis has proposed a new law aimed at protecting residents from the potential risks associated with central bank digital currencies (CBDCs), as well as government surveillance that may come along with it.
Wyoming and Texas have previously taken action to counter perceived threats from the federal government over concerns regarding a central bank digital currency.
Governor DeSantis has expressed his concerns regarding the potential risks associated with a central bank digital currency, including the possibility of increased government surveillance and the loss of individual privacy. He has argued that the use of CBDCs may threaten the financial system’s stability and could lead to inflation.
Governor DeSantis’ proposed legislation is aimed at protecting Florida consumers and businesses from the reckless adoption of a ‘centralized digital dollar’ which would stifle innovation and promote government-sanctioned surveillance.
The proposed law is in opposition to the executive order issued by President Joe Biden in 2022, which mandates the government to evaluate the advantages and disadvantages of developing a central bank digital currency.
DeSantis’ proposal states that a federally sanctioned CBDC would diminish the role of community banks and credit unions in U.S. financial systems. This is because CBDCs would be a direct liability of the federal government rather than of a chartered financial institution, which could reduce market lending power.
The rise of CBDCs has sparked concerns over the potential loss of individual financial sovereignty and privacy. Unlike decentralized digital currencies such as Bitcoin, CBDCs are directly controlled and issued by the government to consumers, giving government bureaucrats the ability to see all consumer activity and the power to cut off access to goods and services for consumers.
The actions that have been taken by Florida, Wyoming, and Texas to oppose the issuance of a CBDC reflect a growing concern among policymakers over the potential risks of government-issued digital currencies.
As the debate over CBDCs continue, it remains to be seen whether other states will follow the lead of Florida, Wyoming, and Texas in opposing the issuance of these assets.