US Ron DeSantis, the governor of Florida and potential Republican nominee for president has proposed legislation that would prohibit the use of a central bank digital currency (CBDC) as money in his state
Last year, President Joseph Biden issued an executive order directing the federal government to research the potential benefits and drawbacks of a CBDC.
DeSantis spoke out against the Federal Reserve issuing and controlling a central bank digital currency, or CBDC, in the United States at a press conference on March 20. He claimed the step would give the federal government more power, and he mentioned more government initiatives that directly affect American consumers, including worries about inflation, the Federal Reserve boosting interest rates, and pressure on banks.
CBDC initiative would pose a threat to privacy and local Banks in the US
Without providing any supporting information, DeSantis mainly dismissed the Fed’s advocates’ grounds for launching a digital dollar, including those related to the environment and reaching the cashless economy.
He cited China’s introduction of the digital yuan as an example of how governments are trying to watch citizen behavior, allowing for the surveillance of spending habits and cutting off access to products and services, as well as how the governments of the Bahamas and Nigeria have dealt with CBDCs.
DeSantis claimed that a federal CBDC would raise issues with privacy and reduce the importance of local banks and credit unions.
“[A CBDC] gives the government a clear view of all consumer behaviors and in Any way they can get into society to implement their agenda. So, the purpose of the central bank’s digital currency is to monitor and regulate American behavior.”
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