What is a Central Bank Digital Currency?
A central bank digital currency (CBDC) is a digital form of money issued by a country’s central bank. It is different from physical cash or bank deposits, which are liabilities of commercial banks. Instead, a CBDC would be a liability of the central bank, meaning the central bank would be responsible for the money.
CBDC could pose risks like privacy, security, stability, and control.
The Federal Reserve, the central bank of the United States, has not decided whether to issue a CBDC. Instead, it explores the potential benefits and risks of a CBDC from various perspectives. It also collaborates with other central banks and stakeholders to learn from their experiences and research.
What is DeSantis’ Position on CBDC?
Florida Governor Ron DeSantis is strongly opposed to the idea of a CBDC. He believes a CBDC would give the federal government too much power over consumers and businesses. He also fears that a CBDC would lead to a “cashless society” where the government could monitor and restrict people’s transactions.
DeSantis has proposed legislation that would ban the use of any CBDC issued by the Federal Reserve or any foreign central bank in Florida. He claims that the Biden administration plans to introduce a CBDC to impose “surveillance and control” and “woke ideology” on Americans.
DeSantis has urged the Florida Legislature to pass his bill and make Florida the first state to ban CBDC. He has also called on other states to adopt similar legislation.
What are the Reactions to DeSantis’ Proposal?
DeSantis’ proposal has sparked mixed reactions from different groups and individuals. Some supporters of DeSantis praise his proposal as a bold and necessary move to protect Florida’s sovereignty and freedom. On the other hand, they agree with DeSantis that a CBDC would threaten individual rights and privacy.
Some critics of DeSantis question his proposal as premature and unfounded. They point out that the Federal Reserve has not made any decision or announcement about issuing a CBDC. They also argue that DeSantis is spreading misinformation and fearmongering about a CBDC.
Some experts and observers doubt the legality and feasibility of DeSantis’ proposal. They wonder how DeSantis would enforce his ban and its consequences for Florida’s economy and financial system. They also suggest that DeSantis may have ulterior motives for his proposal, such as boosting his national profile and presidential ambitions.
What are the Next Steps for DeSantis’ Proposal?
DeSantis’ proposal is still pending in the Florida Legislature, which must be reviewed and voted on before it can become law. The proposal may face opposition or challenges from lawmakers or stakeholders with different views or interests in CBDC.
If DeSantis’s proposal passes the legislature, it will need to be signed by DeSantis himself to become law. The proposal may also face legal challenges or lawsuits from federal authorities or other parties who may claim that it violates the Constitution or federal law.
DeSantis’ proposal is one of many efforts he has undertaken to position himself as a potential presidential candidate.