Florida Governor Introduces Legislation to Prohibit Central Bank Digital Currencies

Florida Governor Ron DeSantis has criticized the Federal Reserve for its handling of the economy and introduced legislation to prohibit the use of central bank digital currencies (CBDCs) in Florida. According to DeSantis, the Fed has done a “horrible job” over the past few years and its actions are causing potential significant turmoil in the economy.[0] He also accused the Fed of taking money out of the economy, causing dislocations in the banking sector and causing individuals to suffer.[0] DeSantis introduced legislation on March 20 to prohibit the use of any FED-issued digital currency in Florida, while calling on other state representatives to do the same.[1]

DeSantis is not alone in his opposition to CBDCs. Republican Senator Ted Cruz introduced a bill last month banning CBDCs, while on the Democratic side, Robert F. Kennedy Jr., who recently filed papers to challenge President Joe Biden in the primaries, tweeted that CBDCs “grease the slippery slope to financial slavery and political tyranny.”[2]

The Fed has been criticized for its handling of the economy, with some saying that its actions have contributed to inflation and economic dislocation. The central bank has been accused of taking money out of the economy by hiking interest rates and reducing its balance sheet. However, others argue that the Fed’s actions were necessary to prevent a more severe economic downturn during the pandemic.

CBDCs are a new type of digital currency that are issued by central banks and are designed to work alongside traditional cash. They are seen as a way to improve the efficiency and security of payments, but also raise concerns about privacy and the potential for government surveillance. Some politicians and commentators argue that CBDCs could be used to exert greater control over the economy and individuals’ financial lives.

The debate over CBDCs is likely to continue as more central banks explore the possibility of issuing their own digital currencies. While some see CBDCs as a positive innovation, others view them with suspicion and fear. As the world becomes increasingly digital, the role of central banks and the nature of money are likely to continue to evolve, and the debate over CBDCs is likely to be a part of that evolution.

0. “Ron DeSantis flogs Fed for ‘perverse incentives’ in monetary policy, interest rates” Florida Politics, 29 Mar. 2023, https://floridapolitics.com/archives/599192-desantis-fed/

1. “Florida Governor Ron DeSantis Says Federal Reserve Digital Dollar Threatens US Financial Freedom” Watcher Guru, 7 Apr. 2023, https://watcher.guru/news/florida-governor-ron-desantis-says-federal-reserve-digital-dollar-threatens-us-financial-freedom

2. “Ron DeSantis’s Deranged Rant About the Fed Ought to Doom His Campaign” The New Republic, 7 Apr. 2023, https://newrepublic.com/article/171694/ron-desantiss-deranged-rant-fed-doom-campaign

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