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The decision of Governor DeSantis to ban CBDCs in Florida has drawn criticism from some legal experts.
Ron DeSantis, Governor of Florida recently signed a bill prohibiting the use of central bank-issued digital currencies (CBDCs) in the state. And now, his move may have set a precedent for other states to follow.
For DeSantis and many more like him, a CBDC defeats the aim of decentralization being that it is controlled by a centralized entity – the government. They also argue that through CBDCs, governments may eventually be able to manipulate where the money goes and what it is being used for.
Other States Speak Out
As it stands, states like Alabama, Louisiana, North Dakota, and Texas are also kicking against a digital dollar, and they have drafted bills to that effect. However, none of the other bills is yet as advanced as Florida’s.
The Legislature of Louisiana lawmakers, for instance, simply asks the US Congress to not support CBDCs. According to the lawmakers, the technology poses a risk to the privacy of Louisiana-based individuals and businesses.
Earlier this month, Texas lawmakers also proposed a bill against “the creation of a central bank digital currency”. They argued that the creation of a CBDC will give the government unprecedented power and control over people’s cash and business dealings.
North Dakota went even further in its bill claiming that a CBDC would mean that the government has control over the lives, freedom, choices, and overall sovereignty of its people.
CBDC Ban in Florida: Ron DeSantis May Be Overreaching
The decision of Governor DeSantis to ban CBDCs in Florida has drawn criticism from some legal experts. According to these experts, Florida’s effort is nothing more than an attempt to stifle innovation. In fact, they suggest that DeSantis may be doing more harm than good for the very digital assets sector he’s trying to protect.
Moreover, America is yet to give a clear statement concerning whether or not it will release a CBDC. The closest thing to a statement was in March when Fed Chair Jerome Powell said that the Fed hadn’t decided on whether the States need a CBDC. Besides, even if the federal government finally decides to adopt a CBDC, DeSantis knows that Florida will have to back down.
As of publication, only 11 countries have launched a CBDC, according to the Atlantic Council’s tracker. However, many more nations including the United States are currently researching the technology.