egislation proposed by Governor Ron DeSantis of Florida intends to safeguard the state's residents from the possible hazards linked to central bank digital currency (CBDC) and the amplified government monitoring that could result from it.
Expressing his apprehensions, Governor DeSantis has highlighted the probable hazards related to the central bank's digital currency, such as the potential loss of privacy and increased government scrutiny. He has further stated that the adoption of CBDCs may pose a threat to the financial system's stability and lead to inflation.
Governor DeSantis also stated that the recently proposed legislation will serve to shield Florida's consumers and businesses from the ill-considered adoption of a centralized digital dollar. He claims that this move will stifle innovation and promote government-sanctioned surveillance, putting an end to this unwarranted adoption.
The proposed legislation is the most recent example of states taking steps to counter the perceived risks arising from the federal government's possible introduction of a CBDC. In 2021, other states such as Wyoming and Texas have also initiated actions regarding these assets.
In May 2021, Texas enacted a law that prevents government entities from mandating individuals to provide their identification information for accessing or utilizing digital currencies. Moreover, this law restricts the state from confiscating digital currencies unless linked to criminal investigations.
Likewise, Wyoming passed a law in March 2021 that recognizes digital currencies as property and outlines a legal framework for their ownership and usage. This legislation also encompasses provisions to safeguard user privacy, such as forbidding the revelation of personal information pertaining to digital currency transactions.
Governor DeSantis' objectives in Florida are akin to the measures implemented by Texas and Wyoming, all of which oppose President Joe Biden's executive order issued in 2022. According to Reuters, this order requires the government to assess the pros and cons of creating a central bank digital currency.
DeSantis' proposal contends that a federally authorized CBDC, as recommended by the Biden administration, would diminish the influence of community banks and credit unions in the US financial system. This is because CBDCs would represent a direct obligation of the federal government, rather than of a chartered financial institution, which could lead to a decrease in market lending capacity.
In contrast to a decentralized digital currency, a CBDC is directly managed and issued by the government to consumers, giving government officials the authority to monitor all consumer activity and the capability to restrict access to goods and services for consumers.
The proposed legislation by Governor DeSantis could be driven not only by concerns for consumer protection but also by political considerations. Although DeSantis has not formally declared his candidacy for the Republican presidential nomination, he is perceived as one of the leading contenders alongside former President Donald Trump.
Source:
https://bitcoinist.com/florida-governor-proposes-legislation-to-ban-cbdc/
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