Florida Governor DeSantis calls for CBDC ban

[Hydrogen]

Florida Governor Ron DeSantis has proposed a law that would prohibit the use of a federally adopted central bank digital currency as money within the state, according to a Monday release.

"Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a 'centralized digital dollar' which will stifle innovation and promote government-sanctioned surveillance," DeSantis said in a statement.

While the U.S. has not yet created a CBDC -- a central bank-issued digital currency representing a nation's fiat currency -- both the Biden administration and the Federal Reserve have been assessing the potential risks and benefits since last year.

DeSantis' proposed law would also forbid the use of a CBDC issued by a foreign central bank, calling on other states to adopt similar restrictions.

Here's an in-depth take on what CBDCs are and how they are different from cryptocurrencies.

In January, Bank of America argued that CBDCs are the future of money and payments as most of the globe explores them.


https://www.msn.com/en-us/money/markets/florida-governor-ron-desantis-calls-for-ban-on-cbdc/ar-AA18RGkl

....


I don't remember anyone in a position of power and authority proposing broadscale, all encompassing bans on CBDC before. This could be the first time a proposal like this has been made.

"Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a 'centralized digital dollar' which will stifle innovation and promote government-sanctioned surveillance," DeSantis said in a statement.

The only CBDC ban I remember is the USA banning venezuela's CBDC the petro:

First U.S. cryptocurrency ban outlaws Venezuela’s CBDC ‘Petro’ coin

The U.S. executive branch issued an executive order prohibiting the use or purchase of Venezuela’s Petro cryptocurrency, claiming the currency was issued unlawfully in an effort to circumvent U.S. sanctions against Venezuela, and in particular the President Nicolás Maduro’s regime.

“All transactions related to, provision of financing for, and other dealings in, by a United States person or within the United States, any digital currency, digital coin, or digital token, that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018, are prohibited as of the effective date of this order,” the executive order reads.

https://www.digitaltrends.com/computing/us-bans-petro-cryptocurrency/

But in terms of history, there has never been a proposal for a widespread ban of all CBDC.

Over the past few weeks, I've thought about what CBDC means in terms of history. Is it simply another shitcoin? Is it visa and mastercard for central banks?

Given the way governments and state bureaucracies are structured. Have we seen past hierarchies where central banks are integrated into retail markets to the degree which a CBDC would allow? It is an interesting topic to think about.

[Fiatless]

This a bold step from one of the Republican presidential hopefuls. His concern for innovation and privacy is proof that he might be open to decentralized currencies. But since the US CBDC is a digital dollar I don't think he has the power or jurisdiction to contest the use of the US dollar regardless of the form it is taking.

I think the Florida governor has started to set his agenda for the Presidential campaign. This means if he becomes president he might discontinue any of Biden's policies on CBDC and propose a ban on the use of these central bank-backed digital currencies. This will be good news for the bitcoin community because the government is distracting people with these CBDCs. Ron DeSantis should also be bold enough to tell us his position on Bitcoin and other cryptocurrencies.

[Faisal2202]

Well, I was convinced to search about Ron DeSantis's lifestyle because to understand the main reason behind his decision about CBDC I try to find the reason from start. And I came to know that he was a teacher and in the navy too, he has got a good background and reputation, After understanding the relationship between Donal Trump and Ron Desantis I can understand why Desantis is against CBDC because Biden is in favor of CBDC and elections are coming in 2024 and I can also see some breakup point between Trump and Ron DeSantis. Now I can deduct based on politics that it's an act of politics to degrade Biden's view about CBDC and to encourage the people of their party to encourage them for their agendas. At last, Trump helped him to become Governor by supporting him Inside the breakup between former allies Donald Trump and Ron DeSantis as the 2024 election grows closer
Here is the source of some news about Biden's thoughts about CBDC.

• Biden takes a big step toward government-backed digital currency
• How Biden’s executive order on cryptocurrency may impact the fate of digital currency and assets

Now if we come to the cryptocurrency point of view, does it hurt the innovation like from the stats what I can see is the only harm CBDC could make is not only to single citizens but it could also impact the life of political leaders like the ones who oppose it. How? Central Bank Digital Currencies and Freedom Are Incompatible. This article will help you to understand it completely, in short, all the control will be in hands of the current government's hands which will create problems for opposition parties as everybody has to move money in secret (you know what I mean hehe).

[Iroh]

This will be good news for the bitcoin community because the government is distracting people with these CBDCs. Ron DeSantis should also be bold enough to tell us his position on Bitcoin and other cryptocurrencies.

Personally, I wouldn’t get happy just yet about Ron calling for the ban of CBDCs nor do I think it would be good news for the bitcoin community.
Ron is a politician and politicians, in my view aren’t to be trusted cause they’ve always got their own personal and most times hidden agenda going forward.

Here’s Ron’s statement during a press conference and I quote “ Ultimately, cash is king and of you can hold it in your hands, you have power over that and the minute it’s all digitized, somebody else is going to have control over that”.

That seems like a guy(to me at least) who is in favor of cold hard cash and any money that’s digitized wouldn’t cut it.
https://twitter.com/berniespofforth/status/1638100720879644673?s=46&t=Ek55yPcSGuxMGKDxl0xP_Q

[Outhue]

I doubt it's going to work out like he hope, what possible threat could CBDC have when its completes Fiat in digital form? That's why this plan of his won't work out, the man is in fear that politicians will be able to move money without anyone knowing, but that's near impossible because CBDC is not a privacy stable coin, it is fully centralized and that's the main reason why many crypto fans don't want to have anything to do with the digital currency, it equals to the law and government spying on you, knowing what you are up to with your money.

[Plaguedeath]

Interesting to see a Florida Governor is disagree with the implementation of CBDC, we just need more governor in Unites States who disagree with CBDC, maybe it doesn't prevent from the countries to launch CBDC but it will give a spot for Bitcoin not to get banned.

CBDC is a real threat for privacy matter because anyone can see how much you holding when you've transact with someone, even worse anyone can see your real name and how much your total balance by just browsing on CBDC explorer.

[EarnOnVictor]

The Governor of Florida is only sharing his opinion, he doesn't have the power to do anything in this regard. And what is causing the delay in the passing and implementation of CBDC is the damage it might cost the existing market, nothing more. Careful consultation is being made and I have even thought on this severally to the point that many fintech would collapse if care is not taken.

This is a more valid point than the ranting of the Governor pointing at invalid excuses like that of Venezuela and others.

[stompix]

CBDC is a real threat for privacy matter because anyone can see how much you holding when you've transact with someone, even worse anyone can see your real name and how much your total balance by just browsing on CBDC explorer.

No current CDBC project that has a chache of being implemented runs on a public blockchain. Most of them are on private permissionless chains and it would be just stupid to make this public, it serves no purpose whatsoever, besides the main chains won't store anything else but balances, it's centralized entities that will utilize that to link it with its own customers, much like address labeling happens right now on some blockchain explorers.

[retreat]

-snip-

I don't remember anyone in a position of power and authority proposing broadscale, all encompassing bans on CBDC before. This could be the first time a proposal like this has been made.

-snip-

His bold statement against the central government's decision to implement CBDC in his region proves that not everyone in government agrees with the implementation of CBDC - there are still people who disagree because everyone has the right to privacy in their transactions. Even though in the end his opposition may be rejected, I still appreciate what he did.

[yhiaali3]

Yes, it may be the only time a prominent politician opposes the issuance of a CBDC, but I can understand Ron DeSantis' point since he is mostly a politician opposed to the ruling party.

The CBDC not only allows the government to impose strict censorship and ban on ordinary citizens, but also on prominent politicians, especially the opposition, the government through the central digital dollar can monitor, track, punish or ban any politician and prevent him from using his money, this is a double-edged sword, so I think some politicians are afraid to be used against them.

[Smartprofit]

This a bold step from one of the Republican presidential hopefuls. His concern for innovation and privacy is proof that he might be open to decentralized currencies. But since the US CBDC is a digital dollar I don't think he has the power or jurisdiction to contest the use of the US dollar regardless of the form it is taking.

I think the Florida governor has started to set his agenda for the Presidential campaign. This means if he becomes president he might discontinue any of Biden's policies on CBDC and propose a ban on the use of these central bank-backed digital currencies. This will be good news for the bitcoin community because the government is distracting people with these CBDCs. Ron DeSantis should also be bold enough to tell us his position on Bitcoin and other cryptocurrencies.

In my opinion, this statement by Florida Governor Ron DeSantis is connected with the specifics of the pre-election political struggle in the United States. 

The pre-election political struggle in the United States is always very tough and categorical statements on the most important issues for American voters.  Politicians choose diametrically opposed discussion positions and very aggressively defend their point of view. 

It's like advertising a product - advertising should be bright, aggressive and well remembered.... 

CBDC is a very important instrument of the digital concentration camp and many politicians around the world want to introduce this financial instrument into our lives. 

In the United States, democratic institutions of power are historically strong, so the introduction of a digital dollar into the American economy will not do without a fierce political struggle.

[rby]

Honestly, DeSantis had made a very bold step which I don't expect him to make. Anyone in government or in the corridors of governmental powers always propose centralisation, sensorship, monitoring and controlling of the masses.
Why has a presidential hopeful decide to think and act differently.
This may cost him his presidential ambition if he continues to push this bill because the caucus won't be happy with this development of course.

[Henrobakkara]

I doubt it's going to work out like he hope, what possible threat could CBDC have when its completes Fiat in digital form? That's why this plan of his won't work out, the man is in fear that politicians will be able to move money without anyone knowing, but that's near impossible because CBDC is not a privacy stable coin, it is fully centralized and that's the main reason why many crypto fans don't want to have anything to do with the digital currency, it equals to the law and government spying on you, knowing what you are up to with your money.

It is almost sounding like he doesn't fully understand what CBDC is which I doubt but if his reason is actually thinking that

politicians will be able to move money without anyone knowing

then, that's a bit worrisome cos that was the reason some government actually adopted CBDC because they want to monitor every transaction and not that they couldn't even with just the online Banking transactions anyway which are one and the same thing.

[Gyfts]

I doubt it's going to work out like he hope, what possible threat could CBDC have when its completes Fiat in digital form? That's why this plan of his won't work out, the man is in fear that politicians will be able to move money without anyone knowing, but that's near impossible because CBDC is not a privacy stable coin, it is fully centralized and that's the main reason why many crypto fans don't want to have anything to do with the digital currency, it equals to the law and government spying on you, knowing what you are up to with your money.

His reasoning is clear -- it increases surveillance capabilities by the U.S. government. I'd add that it also gives even more centralized authority for the U.S. government to control monetary policy. Even though most banking is digital, USD is still a physical system. The U.S. government still recognizes physical cash as legal tender.

Should they move away from such a system and implement digitalized tokens as an alternative -- you can say goodbye to any sense of financial independence as a USD holder. Every token you have will be controllable by the U.S. federal government. It's a lousy system.

Most of the CBDC ban talks are political grandstanding, anyways. But it's still nice to see where a politician stands on these sorts of issues. Should DeSantis become President, it gives us a hint of where he'd take the federal reserve.

[stompix]

His reasoning is clear -- it increases surveillance capabilities by the U.S. government. I'd add that it also gives even more centralized authority for the U.S. government to control monetary policy. Even though most banking is digital, USD is still a physical system. The U.S. government still recognizes physical cash as legal tender.

LMFTFY:

"His reasoning is clear -- it increases surveillance capabilities by the U.S. government" - while it is run by democrats and not by republicans.

The moment he will be in power and will need control he will forget everything about how the government must not have any control over this and with whatever pretext, be it money laundering, fighting terrorism or just because somebody has to think of the children he will do the same, but this time it will be good because they are in charge, not the other ones.

Before anyone is giving to much  credit to DeSantis remember this:

Should the government classify cryptocurrencies as legal forms of payment?
DESANTIS: No, classify cryptocurrencies as unregulated commodities

He being against CBDC doesn't make him a friend of decentralized crypto.

[o48o]

-cut-
I can understand why Desantis is against CBDC because Biden is in favor of CBDC and elections are coming in 2024
-cut-

This is pretty much the only reason. But their bill doesn't make much sense.
Trying to ban tech that doesn't exist yet is just moronic. They don't have any idea how does it even going to work, so using government surveillance as a reason is quite much. It could have ZK smart contracts for all we know. And acting like government couldn't track your bank accounts right now and acting like you are not part of FATF and have been committed to AML all along seems like he is trusting his supporters are stupid enough not to see that.

It's like someone trying to ban visa before visa was a thing.

[Captain Corporate]

I am %99 sure that he has no idea what CBDC is and he just acts based on what he has been advised and that's it. Dude has no idea about even the simplest things, he is not a moron, but he is definitely a single dimensional person who focuses only on politics and that is the only thing he is smart at, not sure if he is bad or good at it, that's voters decision and I am not American so I don't care, but when it comes to crypto stuff, dude has no idea what he is talking about. I am not that much in favor of CBDC neither, so his position aligns with mine and yet I still think he is not the guy we want speaking about this.

[Plaguedeath]

No current CDBC project that has a chache of being implemented runs on a public blockchain. Most of them are on private permissionless chains and it would be just stupid to make this public, it serves no purpose whatsoever, besides the main chains won't store anything else but balances, it's centralized entities that will utilize that to link it with its own customers, much like address labeling happens right now on some blockchain explorers.

That's make sense, yeah it should be similar like the current bank system where they're know anything and other person can't have access over it. But with CBDC it make they know wherever the money we send which is worst than the current cash.

However it's still carry a big risk if the banks or company which controlled CBDC get hacked and then it's make the criminal know everything about our information, you know right the current security of centralized entity on any countries isn't that strong

[YUriy1991]

CBDCs represent a new and potentially more significant way for central banks to interact with the retail market to modernize payment systems and potentially increase financial inclusion. its developments are subject to debate and scrutiny due to potential risks and negative impacts on consumer privacy and financial stability. I think there have been instances in the past where central banks have been integrated into the retail market at a level similar to what the CBDC allows.

For example, in the US, the Federal Reserve is involved in the retail market through various means such as providing loans to banks and implementing monetary policy through interest rates. It can also be seen that some countries, such as Sweden and China, have implemented digital currencies at the national level, which can be seen as a level of integration into the retail market.

[Pierre 2]

As far as I know even our government (Türkiye) plans to supply digital Turkish lira to markets. I think what governor does is good move but sort of helpless. I feel like digital currency is inevitable. Can you remember last time you use cash in your life? I only use cash in barber and taxis (because i don't trust their credit card systems). Fiat money already became some digits in people's bank accounts. In long run all western governments including USA will print/publish (whatever you call) digital currencies. But I will don't use it honestly. I am in for decentralized crypto not digitalized fiat.