Florida Governor Ron DeSantis Signs Bill Banning Central Bank Digital Currencies

Updated: 15 May 2023

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Florida Governor Ron DeSantis signed a bill banning Central Bank Digital Currencies (CBDCs) in the state. He also encouraged other states to follow suit in curbing the introduction of CBDCs in their areas.

CBDCs Banned in Florida

It is now illegal to use central bank digital currencies (CBDCs) in Florida following the bill’s signing prohibiting their use by Governor DeSantis. The legislation came into the limelight in March when DeSantis advised the state lawmakers to create a draft.

According to news sources, the law bans using any CBDC issued by the United States federal authority as a mode of exchange within the Uniform Commercial Code of Florida. It also extends to prohibiting the use of all foreign government-issued CBDCs. The governor further calls upon other states to make analogous prohibitions in their commercial codes.

Florida Bans a Central Bank Digital Currency https://t.co/S8UfWrLZyc

— Ron DeSantis (@GovRonDeSantis) May 12, 2023

While addressing the congregants in the signing ceremony, Governor DeSantis said the move to ban CBDCs was inspired by the study on emerging financial technology sanctioned by U.S. President Joe Biden. He further noted that the United States owns no CBDC, and no plans are available to introduce one.

According to DeSantis, introducing a CBDC by the U.S. government will lead to consumers relinquishing their power to a central authority. He noted that the government could not have sanctioned the commission to study if they did not intend to implement CBDCs.

Governor DeSantis’s Stance on CBDCs

The Florida Governor, who has been persistent in attacking CBDCs, was quoted as saying CBDCs are among “woke politics,” which he is against. DeSantis showed that the use of CBDCs threatens the operation of cryptocurrencies. He acknowledged that cryptocurrencies and other decentralized digital assets are difficult to control, while CBDCs provide an avenue for asserting control. According to the governor, the study by U.S. President Joe was a move to diminish cryptocurrency.

The accented bill changes the current commercial code for the state of Florida. While referring to the suggested Article 12 of the UCC in the state’s legislature, DeSantis said the movement towards encouraging CBDCs addition to states’ Uniform Commercial Codes had seen too much force.

DeSantis also noted that CBDCs were “Big Brother’s Digital Dollar,” which the government planned to use to control how people make purchases. For instance, he said the government could use CBDCs to stop people from purchasing gas to fight global warming.

Ramifications of the New Bill

The Florida boss indicated that the push dissuaded the state from adding CBDCs to its commercial code. He further noted that they needed to enhance security for the people of Florida, proclaiming through the Uniform Commercial Code that they do not recognize CBDCs.

The Uniform Law Commission has been battling with the notion that it is encouraging the espousal of CBDC. The commission recently clarified its take on CBDC.

The new law further shows that any transactions about CBDC would not be under the usual protections of the UCC, a move intended to deter people or organizations from using CBDCs.

The bill received overwhelming support from the Florida House of Representatives, with only one casting a vote against it during the last session. According to DeSantis, CBDCs are under surveillance and could control Americans.

DESANTIS ANTI CBDC BILL JUST PASSED THE HOUSE & SENATE🔥🔥

I brought a select few of our members up to Floridas Capitol to meet with

The Governors Team
The Chief Financial Officers team
The Office of Financial Regulation
The anti-CBDC Bill Sponsors

In order for us to push… pic.twitter.com/vnMQxxVoUF

— Samuel Armes (@samuelarmes) May 3, 2023

The governor later approved businesses’ use of Bitcoin to remit taxes to Florida. The Florida governor has yet to declare his candidacy in the coming gubernatorial contest, but according to polls, he is the frontrunner among the Republican Party nominees.