Florida Governor Ron DeSantis signed a bill last week to ban central bank digital currencies (CBDCs) in the Sunshine State—and now others seem to want to follow in his footsteps.
Currently, Louisiana, Alabama, Texas and North Dakota have all drafted bills that oppose the digital dollar.
CBDCs hot topic today. Unlike cryptocurrencies like Bitcoin or EthereumCBDCs are managed and operated by a centralized entity.
Only 11 countries have launched CBDC, ACCORDING on the Atlantic Council’s tracker, but many other countries are researching and testing the technology. China’s digital yuan is the most advanced.
America’s central bank, the Federal Reserve, has been talking about a CBDC for some time now but hasn’t given any major details on when one will be released.
In March, Fed Chairman Jerome Powell SAYS that the Fed has not decided whether CBDC is necessary in the United States.
And the Fed website now state that the body “has not decided to issue a central bank digital currency (CBDC) and will only continue to issue a CBDC with the authorization of the law.”
But politicians across the US are still concerned—and several have expressed concern and called for opposition to the digital dollar through draft bills (none of which have progressed as far as Florida’s bill.)
Texas lawmakers this month introduced a draft “Expressing opposition to the creation of a central bank digital currency” Texas Senate Concurrent Resolution 25 bill, Claims that a digital dollar “could lead to unprecedented levels of government surveillance and control over private cash holdings and transactions.”
While the representatives of North Dakota “The adoption of a Central Bank Digital Currency of the United States” bill States that “the adoption of a CBDC by the federal government would give unprecedented control over the lives, liberties, choices, and sovereignty of the people of North Dakota to the Federal Reserve.”
The Louisiana Legislature lawmakers SAYS that the technology “raises significant privacy concerns for individuals and businesses in Louisiana”—and urged the US congress not to support CBDC legislation.
Perhaps the closest to radical Florida legislation is Alabama’s draft bill, currently being debated, that would “prohibit any state or local government agency from accepting CBDC as a means of payment.”
Lawmakers who oppose CBDCs are overwhelmingly Republican—making the subject of a centralized digital currency in the States is a partisan issue: Governor DeSantis has CEBU the idea “awakened,” as anti-crypto Democrat Elizabeth Warren called for the US to pursue a CBDC.
But until the Federal Reserve really announces what it’s doing with the technology, the CBDC could be little more than fodder for a political culture war.