Key takeaways:
- The Governor of Florida has formally signed a bill to outlaw Central Bank Digital Currencies.
- Additionally, the bill calls on neighboring states to take steps to prevent the potential entry of CBDCs through their commercial rules.
Ron DeSantis, the governor of Florida, has formally outlawed Central Bank Digital Currencies (CBDCs) in the state. Additionally, the law is planned to shield Floridians from the arrival of a digital currency issued by the Federal Reserve this summer.
The new law outlaws using a federal CBDC issued by the United States “as money within Florida’s Uniform Commercial Code.” DeSantis claimed during the bill’s signing ceremony that research done on the new financial technologies by the Joe Biden administration inspired him to take action. However, there is no CBDC in the United States, and no current plans exist to establish one.
Additionally, the bill forbids the use of CBDCs issued by foreign governments and encourages other states to enact comparable restrictions using their business codes. DeSantis considered the introduction of a CBDC to be a threat to cryptocurrencies as well:
“I think they want to crowd out and eliminate other types of digital assets like cryptocurrency because they can’t control that, so they don’t like that.”
The Uniform Law Commission has gone to great lengths to dispel the notion that it is advocating for the adoption of CBDC, and it has even just issued a clarification of its position. Even without a formal contractual relationship with a third party, the Uniform Commercial Code (UCC) may impose responsibilities and modify rights. Florida is able to change this definition.
The governor has made no secret of his disapproval of the idea of a digital currency under government control. DeSantis, though, put out legislation in March of this year to ban digital money. DeSantis previously stated that a digital currency managed by the government was “about surveillance and control.” He also expressed his desire to “protect Florida consumers” from the effects of its impending arrival.
The law specifically forbids the use of any CBDC that has been adopted at the federal level as currency within the Florida UCC. It has also put in place safeguards against the substitute primary global currency. Additionally, it has urged states to pass legislation along the same lines.
DeSantis has joined a group of American legislators who are advocating for similar bans. Ted Cruz, who has already demonstrated his support for Bitcoin, is one of them. Additionally, Robert F. Kennedy Jr., a current candidate for president, has expressed similar views.
The Texas state legislature recently voted to include a provision in the state’s Bill of Rights recognizing people’s freedom to acquire, keep, and utilize digital currencies.
