Florida legislature approves DeSantis-backed ban on central bank digital currencies

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The Florida legislature, including a majority of Democrats, has supported Governor Ron DeSantis' proposal to ban central bank digital currencies (CBDC) in the state.

Despite Democrats' opposition to many of Governor Ron DeSantis' proposals during the Regular Session, most backed a measure to prohibit central bank digital currencies in Florida. SB 7054 passed the House with a 116-1 vote, with Rep. Felicia Robinson, a Miami Gardens Democrat, as the only dissenter.

The Senate approved the bill 34-5 last week, with seven of the 12 Democrats supporting it, Florida Politics reported.

The bill defines a CBDC as a "digital medium of exchange, or digital monetary unit of account issued by the United States Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system," and bans the state from accepting such currencies.

Governor DeSantis advocated for the measure, citing concerns about the federal government potentially tracking purchases or imposing sanctions on firearm buyers. Florida's Chief Financial Officer, Jimmy Patronis, also supported the bill.

Patronis released a statement expressing concerns about the possibility of a federally controlled CBDC being weaponized by the Biden Administration, emphasizing the importance of protecting Floridians' financial privacy from government surveillance.

Last year, President Biden issued an executive order to study the use of a CBDC for consumer protection regarding decentralized cryptocurrencies and combating financial crimes. However, the Federal Reserve has not yet pursued any plans to develop a CBDC.

Rep. Wyman Duggan, a Jacksonville Republican, praised the bill for its aim to protect Floridians' privacy and expressed appreciation for the support from state leadership that prioritizes citizens' wellbeing.