Florida Governor Ron DeSantis has taken a bold stance against centralized digital currencies, signing a bill prohibiting any future implementation of a central bank digital currency (CBDC) in the state.
This move comes as the Biden administration explores the potential of CBDCs, which DeSantis believes would threaten citizens’ financial independence and privacy.
DeSantis on the dangers of CBDCs
During a press conference in Fort Myers, DeSantis expressed his concerns over the recent push for CBDCs in the US. He argued that the government’s eagerness to regulate citizens’ lives could extend to the financial realm, where a CBDC would grant them real-time access to every transaction.
According to DeSantis, this level of control is fundamentally opposed to the principles of a free society, shifting power from consumers to a centralized authority.
DeSantis also stated that he doubts Congress would approve a CBDC, but should it happen, the protections established by the recently signed bill would serve as an important defense against the government’s overreach of power.
Introduced in March, Senate Bill 7054 swiftly gained approval in the House and will officially become law once signed into the registrar.
The bill specifically defines a CBDC as any digital currency, digital medium of exchange, or digital monetary unit of account issued and validated by the Federal Reserve or any foreign central bank or financial regulator. Moreover, the bill revises the definition of money to exclude CBDCs.
In addition to the CBDC ban, DeSantis signed another bill (SB 214) that prevents credit card companies from using separate merchant category codes for firearm and ammunition sales in Florida. This legislation aims to protect the privacy of gun owners and their purchase history.
Potential national implications
DeSantis’ actions come in the wake of President Joe Biden’s executive order directing officials to examine the risks and benefits of cryptocurrencies and CBDCs. Unlike cryptocurrencies, a central bank digital currency’s value would be fixed by the Federal Reserve.
The Florida legislature, dominated by Republicans, overwhelmingly supported the bill signed by DeSantis, who is rumored to be considering a presidential run in 2024.
The governor contends that the bill is designed to prevent the federal government from controlling how citizens use their money. DeSantis emphasized potential privacy issues that could arise, such as the government tracking citizens’ spending habits and limiting purchases based on their preferences or beliefs.
The new laws, set to take effect on July 1, demonstrate Florida’s commitment to preserving citizens’ financial independence and privacy.
By banning CBDCs and limiting credit card companies’ ability to track certain purchases, Florida is taking a firm stand against what it perceives as government overreach into the lives of its residents.
As the debate surrounding CBDCs and financial privacy continues to unfold, Florida’s actions could set a precedent for other states to follow.
