Governor Ron DeSantis of Florida has expressed his strong opposition to the use of central bank digital currencies (CBDCs) and has urged other states to follow suit. In a recent address, the governor emphasized that he wants to ensure that Florida never has to resort to utilizing CBDCs as a mode of payment.
DeSantis seems to believe that CBDCs pose a potential threat to the state’s monetary system and economic stability, and he wants to take proactive measures to prevent any such situation from occurring. The governor’s stance reflects growing concerns among some policymakers and experts about the potential risks associated with CBDCs, including issues related to privacy, security, and financial stability.
No CBDC in Florida https://t.co/p9pwSTmrlN
— Ron DeSantis (@GovRonDeSantis) March 20, 2023
During a recent speech, Ron DeSantis stated, as The Daily Hodl quotes:
Today, I’m here to call on the legislator to pass legislation to expressly forbid the use of CBDC as money within Florida’s commercial code. This will ensure that Florida continues to be a state that supports innovation in the financial sector through the market while protecting against government surveillance over your personal finances. The legislation shouldn’t stop there.
Given a continued increase in Chinese influence on worldwide affairs and the desire to adopt CBDCs worldwide, the legislation should also prohibit any CBDC issued by a foreign reserve or government-sanctioned central bank. This will ensure that any effort to adopt a worldwide digital currency never occurs in the free state of Florida.
There is an ongoing debate about the potential effects of central bank digital currencies (CBDCs) on the economy. While some proponents argue that CBDCs could enhance efficiency and financial inclusion, there are also concerns that they could have negative implications for the economy.
One potential issue is the impact on financial intermediaries. CBDCs could potentially replace traditional bank deposits, leading to a significant reduction in demand for bank services. This could result in banks losing deposits, which in turn could reduce their ability to lend money and potentially harm economic growth.