Florida Enacts New Law To Ban CBDC

Key Points:

• Florida is currently the first state in the United States to outlaw CBDCs.
• Florida Governor Ron DeSantis has issued an official prohibition on the issuing and usage of CBDCs in the state.
• Floridians will also be shielded against the introduction of a digital currency created by the Federal Reserve.

A central bank digital currency (CBDC), which has not been issued in the United States, would be prohibited in Florida if ever released, according to new legislation signed by Gov. Ron DeSantis.

On March 20, DeSantis introduced the measure, claiming that a CBDC would undermine the role of community banks and credit unions, monitor consumer spending, and have the authority to restrict access to products and services.

The CBDC prohibition was one of the Governor’s legislative goals for the session, and it is now law when he signed Bill 7054 during a Fort Myers ceremony. DeSantis said that the prohibition is necessary to safeguard customers from government supervision of individual transactions, which might lead to limits on the purchase of certain items such as weapons and gasoline.

The 46th governor of Florida has not been shy about expressing his belief that a government-regulated digital currency might have a number of catastrophic flaws. As a result, DeSantis proposed new legislation in March of this year that would make the usage of government-backed digital money illegal.

The measure specifically intends to make it unlawful under the Florida Uniform Commercial Code to treat any CBDC as legal money. Moreover, measures have been put in place to insulate the state from any external pressure to accept the central currency. Moreover, DeSantish has asked the governments of the United States’ other states to band together to implement similar laws. DeSantis said in a news statement announcing the bill’s introduction:

“The Biden administration’s efforts to inject a Centralized Bank Digital Currency is about surveillance and control.”

While no such currency has been accepted in the United States — and it may never be — DeSantis submitted the measure in response to President Joe Biden’s executive order last year urging haste in the study and creation of a prospective US CBDC.

On March 20, DeSantis made a press statement in which he declared his desire to prohibit the usage of CBDCs and said that consumers and investors would be protected from the spread of digital currencies, which threatened Florida residents’ freedom and security.

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Harold

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