Florida Governor Ron DeSantis has ruled out the possibility of introducing a Central Bank Digital Currency (CBDC) in the state. DeSantis cited concerns over privacy and potential fraud as reasons for not pursuing a CBDC. This decision comes as other states and countries around the world are exploring the possibility of issuing their own digital currencies.
Florida Governor Ron DeSantis Reveals His Opposition to CBDCs
Florida Governor Ron DeSantis recently came out against Central Bank Digital Currencies (CBDCs), expressing his support for a ban on such technologies within the state. The governor referred to CBDCs as tools of financial surveillance, claiming that they would give the government a direct view over all consumer activities.
Standing Against CBDCs
In a Twitter post shared earlier this week, DeSantis recalled President Biden’s digital asset executive order from March 2022, which called on government agencies to explore the creation of a CBDC. He asserted that CBDCs are “different” from cryptocurrencies such as Bitcoin, stating that they are intended to surveil Americans and control their behaviour.
The governor expressed concerns that if a CBDC took hold in the United States, the government could use it to censor transactions that they disapprove of, such as firearms and gasoline sales. He likened a potential CBDC to China’s digital yuan, where the People’s Bank of China monitors spending habits and can cut off access to goods and services.
Bankers Breaking the Rules
In addition to CBDCs, DeSantis also criticised the Federal Reserve’s (Fed) decision to bail out Silicon Valley Bank’s (SVB) depositors, a move that went beyond the Federal Deposit Insurance Corporation’s standard $250,000 limit. DeSantis believes that this was a demonstration of the Fed’s willingness to break the rules when implementing a CBDC, stating that they will use it in ways that benefit their agenda.
He also touched on the Fed’s new Bank Term Funding Program, which has been used to inject $300 billion back into the economy within a week of SVB’s collapse. DeSantis noted that the move had wiped out half of the progress made by the Fed in reducing the money supply throughout the past year to tame inflation.
Governor Ron DeSantis joins other Republican politicians, including Senator Ted Cruz and Congressman Tom Emmer, in opposing CBDCs. DeSantis believes that CBDCs would give the government too much power over Americans and that they would use this power to censor and control financial transactions. As opposition to CBDCs continues to grow, it remains to be seen whether the Biden administration will push forward with their creation.