Florida Governor Ron DeSantis recently made his first-in-the-nation speech where he explicitly shunned the proposed central bank digital currency (CBDC) pursued by the current administration. Also, there are claims that he is supporting the crypto adoption of Florida banks.
Florida Gov. Ron DeSantis Wants to Ban CBDCs
Florida Governor Ron DeSantis has taken a bold stance against the proposed central bank digital currency (CBDC) by the administration of US President Joseph “Joe” Biden, calling it a tool for “surveillance and control” and referring to it as “Big Brother’s Digital Dollar”. In a speech on March 20, he announced a comprehensive legislative proposal to protect Floridians from the CBDC, which he says threatens individual privacy and economic freedom.
Here are some key points from the announcement of the possible contender for the next US presidency:
1. Protecting Consumers and Businesses
The Governor’s proposed legislation aims to prevent the adoption of a federally-controlled CBDC in Florida. It seeks to prohibit the use of such digital currencies as legal tender in the state by excluding them from the Uniform Commercial Code (UCC).
Additionally, the legislation would safeguard against the emergence of a central global currency by prohibiting the use of any CBDC issued by a foreign reserve or foreign-sanctioned central bank. He is also urging other states to join Florida in adopting comparable measures in their respective Commercial Codes to counteract this trend across the nation.
2. Fighting Back Against Federal Control
According to DeSantis, CBDCs are a potential threat to economic freedom and personal privacy. He views these digital currencies as an effort by the “Davos elites” to inject their “woke” ESG (Environmental, Social, and Governance) ideology into the US financial system.
DeSantis argues that CBDCs issued by the government would give bureaucrats access to all consumer activity, enabling them to regulate access to goods and services. Moreover, he claims that such currencies would be the direct liability of the Federal government rather than of a chartered financial institution, which would reduce the market lending power of the latter.
3. Protecting Individual Rights
The Florida politician and his supporters see this as a fight to protect individual rights and personal economic freedom. They believe that a CBDC would be a tool for economic central planners and government-sanctioned surveillance. They want to protect the privacy of consumers and businesses and prevent the federal government from overreaching and promoting a central control state.
Governor DeSantis Pushing for Crypto Adoption in Florida Banks
In addition to shunning the proposed CBDC, there are claims that DeSantis is supporting the adoption of cryptocurrencies by Florida banks. According to Ark Invest CEO Catherine Wood in an interview, she heard a rumor from reliable sources that the Florida governor is in talks with state-regulated Florida banks to “open them up more to crypto”.
The play here is for Florida banks to capitalize and fill in the void left behind by the top crypto banks that just went bust. Of course, the Ark Invest exec is referring to the likes of Signature Bank, Silvergate, and Silicon Valley Bank here.
DeSantis’ move could be seen as a way to drum up support for a decentralized digital currency that is not controlled by the government. It could also work in favor of community banks and credit unions in the state by giving them an alternative to a federally controlled CBDC. On the side of the Feds, a DeSantis presidency could derail plans for CBDC adoption in the US and may pave the way for crypto-friendly regulations.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.