Governor Ron DeSantis has emphasized his commitment to preventing the adoption of centrally backed digital currencies (CBDC) in Florida. He cited concerns about their potential to monitor every transaction. He stated that Florida residents would not accept a CBDC that could allow the government to track all their transactions and criticized the social credit score requirement associated with them.
In March 2023, DeSantis proposed an amendment to the State’s Uniform Commercial Code that would explicitly prohibit using a CBDC backed by the Federal Reserve and ban any CBDC issued by a central bank with foreign reserves or that has obtained international approval.
The governor believes that CBDCs would undermine economic independence and security and are solely focused on surveillance and control and weaken community banks and credit unions.
Meanwhile, Governor DeSantis has advocated for cryptocurrency, stating that it can provide independence from government control. He noted that the main risk associated with cryptocurrencies is that the government wants to replace them as a form of payment with a digital currency issued by a central bank.
The governor’s criticism of CBDCs comes at a time when several countries, including China, are pursuing the adoption of these digital currencies. BNP Paribas has partnered with the Bank of China to offer China’s digital currency to its corporate clients, while India aims to double the number of participants in its retail CBDC pilot project from 90,000 to 500,000 by July 2023.
Several countries, including China, are pursuing the adoption of CBDCs. BNP Paribas has partnered with the Bank of China to offer China’s digital currency to its corporate clients. Meanwhile, India aims to double the number of participants in its retail CBDC pilot project from 90,000 to 500,000 by July of this year.
Some stakeholders have suggested that the appointment of Lael Brainard, a vocal advocate for the digital dollar and Vice Chair of the Federal Reserve, as President Joe Biden’s chief economic advisor in February 2023 indicates a push for the adoption of CBDCs in the United States.
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