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Florida Governor Ron DeSantis Introduces State Legislation Banning CBDCs

 1 year ago
source link: https://finance.yahoo.com/news/florida-governor-ron-desantis-introduces-203003528.html
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Florida Governor Ron DeSantis Introduces State Legislation Banning CBDCs

André Beganski
Tue, March 21, 2023, 5:30 AM GMT+9·3 min read
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Florida Governor Ron DeSantis proposed legislation on Monday that would ban central bank digital currencies (CBDCs) from the Sunshine State, portraying it as a measure to safeguard Floridians’ financial privacy.

The legislation would prohibit in Florida any CBDC that the U.S. Federal Reserve could introduce and any created by a foreign government, outlawing the technology entirely from being used as a form of money within the state.

DeSantis introduced the legislation from behind a podium with the phrase “Big Brother’s Digital Dollar” plastered across it. He skewered 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 all about is surveilling Americans and controlling Americans,” he said. “You're opening up a major can of worms, and you're handing a central bank huge, huge amounts of power, and they will use that power.”

In interviews with Decrypt, ShapeShift founder Erik Voorhees has also called CBDCs “Orwellian,” and whistleblower Edward Snowden has called them “cryptofascist currencies.”

CBDCs are similar to stablecoins in that they are pegged to the price of a sovereign currency like the U.S. dollar. But CBDCs are issued and maintained by a nation state or central bank instead of 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 explored the idea of a CBDC since 2016, and the U.S. central bank has repeatedly said it would need approval from congress before launching one. Analysts have said the technology could foster more financial inclusion—banking the unbanked—but critics oppose it due to the possibility of financial surveillance and an expansion of government control.

Though the Fed has said it’s still in the early stages of researching a CBDC and hasn’t determined whether launching one would be worth it, the idea that a digital dollar is a threat to civil liberties has gained traction in Republican circles. China launched its own CBDC, the Digital Yuan, last year, which supporters of a U.S. CBDC have referenced to suggest the U.S. risks falling behind on the technology, while critics have said it simply illustrates China’s continued capital controls.

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