On Friday Florida’s 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.
Florida Puts the Brakes on CBDCs
The Sunshine State has officially outlawed the use of a central bank digital currency (CBDC) following the approval of SB 7054 or HB 7049 by the Florida House of Representatives and Senate. Governor Ron DeSantis put pen to paper and signed the bill, cementing the ban on Friday. The signing ceremony, which took place in Fort Myers, was attended by Wilton Simpson, the state’s 13th commissioner of agriculture, and Kathleen Passidomo, president of the Southwest Florida Public Service Academy at Fort Myers Technical College.
The new anti-CBDC law will come into effect on July 1, 2023. “They’re going to be able to have the window into what you’re doing with the money and the ability to control where that money is going,” DeSantis said during the signing ceremony. “They could block, if you filled up your gas tank too much, hey, they’re fighting global warming, ‘You can’t do any more.’ Maybe you bought a firearm last week. They don’t want you to buy another one this week.”
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. However, not everyone is on board with this decision. Nobel laureate and Keynesian economist Paul Krugman criticized DeSantis, stating that it’s “highly unlikely that a state government would have the right to prohibit” the use of a CBDC.
While some Republican state leaders are opposed to CBDCs, others are more welcoming. 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 DeSantis, on the other hand, remains resolute in his belief that CBDCs pose a threat to Florida’s financial stability and is determined to lead the charge against them. “I’m just glad we are thinking ahead here in the state of Florida because once this genie is out of the bottle, I think it will be very hard to put back in,” DeSantis said in Fort Myers. There is a widespread belief that DeSantis has his sights set on the White House and will be running for president of the United States in the 2024 election.
What are your thoughts on Florida’s decision to ban the use of central bank digital currencies (CBDCs)? Let us know what you think in the comments section below.