• Governor Ron DeSantis of Florida signed a bill that prohibits the use of central bank digital currencies (CBDCs) in the state.
• The bill will come into effect on July 1, 2023 and bans the use of federally adopted CBDCs as money.
• While some Republican state leaders oppose CBDCs, others are more welcoming and Elizabeth Warren of Massachusetts expressed her support for CBDCs.
Governor Ron DeSantis Signs Bill Prohibiting Use of Central Bank Digital Currencies in Florida
On Friday, Governor Ron DeSantis signed legislation that bans the use of a central bank digital currency (CBDC) in the state. Following the bill SB 7054 being signed into law, Florida’s Uniform Commercial Code (UCC) now explicitly forbids the use of a federally adopted CBDC as money. The new anti-CBDC law will come into effect on July 1, 2023.
Opposition to CBDCs
Several GOP lawmakers including Tom Emmer and Ted Cruz have introduced bills opposing the use of CBDCs. Governor DeSantis is urging other politicians and states to follow Florida’s example and take a stand against CBDCs. Nobel laureate and Keynesian economist Paul Krugman criticized DeSantis for his stance against CBDCs stating that it’s “highly unlikely that a state government would have the right to prohibit” their use.
Support for CBDCs
Surprisingly, Democratic senator Elizabeth Warren of Massachusetts who is known for her strong stance against corruption in the banking industry is in favor of CBDCs. In a recent interview with NBC’s Chuck Todd Warren expressed her support for CBDCs stating that “it’s time for us to move in that direction.“
Governor’s Stand Against CDBC’s
Governor Ron DeSantis remains resolute in his belief that CDBC’s pose a threat to Florida’ financial stability and is determined to lead charge against them. He said during signing ceremony „They’re going to be able to have window into what you’re doing with money and ability control where money is going“.
Conclusion
Despite opposition from some Republican state leaders, Governor Ron Desantis has taken a stand against centralized digital currencies by signing legislation banning their usage in Florida effective July 2021