Florida Gov. Ron DeSantis on Monday proposed legislation that would ban central bank digital currencies (CBDCs) from the Sunshine State, portraying it as a measure to protect the financial privacy of Floridians.
The legislation would ban in Florida any CBDC the Federal Reserve might adopt and any created by a foreign government, and outright prohibit the technology’s use as a form of money within the state.
DeSantis introduced the legislation behind a podium emblazoned with the phrase “Big Brother’s Digital Dollar.” He has speared the technology as a vehicle that could lead to government overreach and pave the way for financial surveillance.
“What [a] Central bank digital currency is about monitoring Americans and controlling Americans,” he said. “You open a big can of worms and you give a central bank huge, huge amounts of power, and they’re going to use that power.”
In interviews with Decrypt, ShapeShift founder Erik Voorhees has also referred to CBDCs as “Orwellian,” and whistleblower Edward Snowden has called them “crypto-fascist currencies.”
CBDCs are similar to stablecoins in that they are pegged to the price of a sovereign currency like the US dollar. But CBDCs are issued and governed by a nation-state or central bank, rather than being minted by private companies on decentralized networks like Tether’s USDT or Circle’s USDC, the two largest stablecoins by market cap.
The Fed has been exploring the idea of a CBDC since 2016, and the Federal Reserve has repeatedly said it would need congressional approval before introducing one. Analysts have said the technology could encourage more financial inclusion — unbanked banks — but critics dismiss it over the possibility of financial oversight and expanding government scrutiny.
Although the Fed has stated that it is still in the early stages of researching a CBDC and has not yet decided whether it is worth launching one, the idea that a digital dollar poses a threat to civil liberties has caught on gained importance in republican circles. China launched its own CBDC, the Digital Yuan, last year, which proponents of a US CBDC have referred to as indicating the US risks falling behind on technology, while critics said it merely exemplifies China’s continued capital controls.
During his remarks, DeSantis recalled President Biden’s crypto executive order last year, which directed government agencies to align with a crypto roadmap. It included a section titled “Exploring a US Central Bank Digital Currency (CBDC)”.
Without explicitly naming names, DeSantis said CBDCs would be used to “advance their agenda” if introduced, including, he argued, limiting the amount of gasoline a person could purchase or preventing them from buying it prevented from purchasing a firearm.
Florida’s governor has urged other states to pass similar laws banning CBDCs. He said Texas is likely to follow suit after talks with Dan Patrick, the state’s lieutenant governor.
DeSantis has not yet announced whether he will run as the GOP’s next presidential nominee. However, according to Morning Consult’s 2024 GOP Primary Tracker, recent polls rank him as one of the leading contenders.
And DeSantis isn’t the only conservative voice to recently oppose a CBDC in the US
Republican House Majority Whip Tom Emmer (R-MN) last month reintroduced legislation limiting the Fed’s ability to issue CBDC directly to American consumers. And earlier this month, Emmer spoke about CBDCs before the Cato Institute, where he said the technology is undermining Americans’ financial privacy.
Fox News host Tucker Carlson recently linked the collapse of the Silicon Valley bank to the possible launch of a CBDC on his show Tucker Carlson Tonight. While he warned, “We’re not claiming a conspiracy here,” he also claimed that bank consolidation will lead to more government scrutiny and the introduction of a CBDC.
“Unless people start making a lot of noise and pushing a lot, that means … a currency controlled by politicians,” Carlson said. “Sign up for the CBDC app today to get your food stamps.”