Florida Governor Ron DeSantis has ban central bank digital currencies (CBDCs) in the state. CBDCs are digital versions of fiat currencies, such as the US dollar, that are issued and backed by a central bank. DeSantis argues that CBDCs could pose a threat to financial privacy and individual freedom.
The bill, SB 2004, would prohibit the use of CBDCs in Florida. It would also prohibit the state from participating in any CBDC system. DeSantis has called on other states to join Florida in banning CBDCs.
“The Biden administration’s efforts to inject a Centralized Bank Digital Currency is about surveillance and control,” DeSantis said in a statement. “Today’s announcement will protect Florida consumers and businesses from the reckless and irresponsible actions of the Biden administration.”
CBDCs are still in their early stages of development, but several countries, including China and the Bahamas, have already launched their own CBDCs. The US Federal Reserve is also considering issuing a CBDC.
Proponents of CBDCs argue that they could make the financial system more efficient and accessible. They also argue that CBDCs could help to reduce the use of cash, which could make it more difficult for criminals to operate.
However, critics of CBDCs argue that they could pose a threat to financial privacy and individual freedom. They also argue that CBDCs could give governments too much control over the financial system.
The debate over CBDCs is likely to continue in the years to come. It remains to be seen whether Florida’s ban on CBDCs will be adopted by other states.