The United States government’s plan to introduce a central bank digital currency (CBDC) has been met with conflicting opinions, as the Governor of Florida, Ron DeSantis, proposes a ban on the use of CBDC in his state.
DeSantis, who is also a potential Republican presidential candidate for the 2024 election, argues that CBDC will limit innovation and promote government surveillance. In a press release, he stated that the proposed law would protect Florida consumers and businesses from the risky centralized digital dollar.
No CBDC in Florida https://t.co/p9pwSTmrlN
— Ron DeSantis (@GovRonDeSantis) March 20, 2023
Moreover, the law would prohibit the use of CBDC in Florida issued by any foreign central bank. DeSantis is also calling on other states to apply similar legislation. However, DeSantis remains open to Bitcoin, as he supports the idea of companies paying taxes with cryptocurrency.
In contrast, the majority of the world’s major economies are actively developing CBDC solutions, with hopes of strengthening their national financial systems and avoiding the impact of purely crypto-currencies like Bitcoin or stablecoins.
Despite DeSantis’s reservations, the federal government has already been tasked with researching the use of CBDC and the potential risks it may pose. The government has also been developing policy recommendations to protect investors and further increase the US’s financial position in the cryptocurrency industry.
In the same week, South Dakota Governor Kristi Noem, also a Republican, vetoed a bill that would have allowed the use of CBDC in the state, but not Bitcoin.
Overall, the development of state-backed digital currencies is being actively pursued by most major economies in the world, including the US, the European Union, and China. However, there are differing opinions on how to implement and regulate these currencies, with some advocating for their use and others, like DeSantis, calling for restrictions on their use to protect individual privacy and avoid government control. The debate over CBDCs and Bitcoin is likely to continue as digital currencies continue to gain in popularity and adoption.
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