Florida has taken a significant step in protecting the privacy and financial freedom of its citizens by passing anti-central bank digital currency (CBDC) legislation. The bill, known as SB 7054, explicitly prohibits the use of CBDCs as a “digital medium of exchange” in the state if issued by the US central bank, a federal agency, or a foreign government. Governor Ron DeSantis has been vocal in his criticism of CBDCs, taking a stand against what he terms “woke politics.” The legislation, which will come into effect on July 1, 2023, represents a comprehensive definition of CBDCs and outlines its primary objective: “to safeguard Floridians by banning central bank digital currencies.”
The Florida House of Representatives approved the bill with an overwhelming 116-1 vote on Wednesday, with the state Senate having sanctioned it last week with a 34-5 majority. Democratic lawmakers also supported the anti-CBDC legislation, reflecting the fact that opposition to CBDCs is not confined to any particular political ideology.
While the Republican Party has been more closely associated with opposing CBDCs, Robert Kennedy Jr., a Democratic US presidential candidate, warned of the potential for political suppression via CBDCs in April, calling them “grease for the slippery slope to financial slavery and political tyranny.”
Florida’s Chief Financial Officer Jimmy Patronis has championed the bill and is adamant that the Biden Administration’s initiatives will not go unchallenged in the Sunshine State. He argues that a federally controlled CBDC would enable the unwarranted surveillance of Floridians’ financial data, declaring, “Florida won’t let it stand.”
Wyman Duggan, a Republican representative in Florida, is proud of the bill’s passage and says that the state government is committed to protecting the privacy of Floridians. Duggan emphasizes that the legislation will have no bearing on state and local revenues or any indeterminate impact on Florida’s private sector.
The passing of this bill reflects the growing concern among governments worldwide that CBDCs could threaten their financial sovereignty and the privacy rights of their citizens. China is leading the way in CBDC development, but other countries like the United States, the United Kingdom, and Sweden are also exploring the technology’s potential benefits.
Although many view CBDCs as a significant technological development that could potentially have game-changing benefits, others consider them a potential threat to individual freedoms and financial privacy. The Florida legislation underscores the view that CBDCs could pose a significant risk of unwarranted government surveillance, leading to calls for greater regulatory scrutiny.
Florida’s anti-CBDC legislation could be the start of a wider trend, with other states and countries possibly following suit in a bid to protect their citizens’ financial privacy and freedom. It remains to be seen how other jurisdictions will respond to the growing trend of CBDC development, but for now, Florida’s anti-CBDC bill is a significant step forward in safeguarding individual privacy and financial liberty.
