A Gov. Ron DeSantis decision to outlaw a United States Central Bank Digital Currency (CBDC) statewide is important because it ensures transactions will remain private and confidential, according to a Florida attorney.
“All of the transactions would be known by the government, monitored by the government, and could be controlled by the government under a Central Bank Digital Currency,” said Liberty Counsel founder Mat Staver. “So, it really even goes beyond a cashless society and heading towards a government-controlled monetary system that has a serious impact on restricting your freedom.”
Senate Bill 7054 prohibits the use of a United States CBDC and a foreign-issued CBDC by excluding them from the definition of money within Florida’s Uniform Commercial Code.
"I think you'll see other states following Florida's lead," Staver told the Florida Record. "Florida's the first one, but I think it's not going to be the last state."
Liberty Counsel is a tax-exempt law firm that engages in litigation related to the free expression of Christianity.
DeSantis enacted SB 7054 following the Florida legislature’s approval after U.S. Pres. Joe Biden issued an order on March 9, 2022, allowing for the development of a United States CBDC.
“My Administration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC,” Biden said in a statement online. “These efforts should include assessments of possible benefits and risks for consumers, investors, and businesses; financial stability and systemic risk; payment systems; national security; the ability to exercise human rights; financial inclusion and equity; and the actions required to launch a United States CBDC if doing so is deemed to be in the national interest.”
Before the Biden administration is permitted to issue the new currency to Americans, the Federal Reserve Bank would be required to obtain authorization from Congress because under Article 1, Section 8 of the U.S. Constitution, only Congress has the power “to coin money” and “regulate the value thereof.”
According to Gov. DeSantis, a CBDC would diminish the role of community banks and credit unions.
“The government and large credit card companies should not have the power to shut off access to your hard-earned money because they disagree with your politics,” DeSantis said in a statement online. “Biden’s Central Bank Digital Currency aims to increase government control over people’s finances, and we will not allow it."
Because Florida’s state-level legislation is the first of its kind, Staver is unclear whether the ban would legally withstand a federal mandate that requires the use of CBDC.
"It's possible that it could create states that accept CBDC and states that don't in the future and that's why there's an effort to try and limit the use of CBDC filed by Sen. Ted Cruz," Staver added. "It does not have a vote scheduled, however."