Florida Gov. Ron DeSantis has proposed legislation to ban the use of a national central bank digital currency (CBDC) as money in the state.
A CBDC is a digital version of currency that's backed by the government.
- The U.S. Federal Reserve has been exploring the creation of a digital dollar. Proponents say it would speed up transactions and lower fees, among other benefits.
- Unlike Bitcoin and other private cryptocurrencies, a CBDC would be backed by the Fed like the paper dollar.
- However, DeSantis argues that CBDCs could stifle innovation and promote government surveillance.
- He also argues that a federally sanctioned CBDC would diminish community banks and credit unions.
- A year ago, President Biden signed an executive order directing federal agencies to research and potentially develop a U.S. digital dollar.
- The
order asks the government to examine the creation of a CBDC, including
the laws that would need to be passed and technical issues.
