Presidential hopeful Ron DeSantis, known for his strong views, has once again made headlines. His latest stance? A full-throttle opposition against the introduction of Central Bank Digital Currencies (CBDCs) in the United States.
DeSantis’s hard stance on CBDCs
DeSantis, a Republican candidate for the 2024 Presidential elections, has vowed to quash any attempts to introduce CBDCs in the country if he emerges victorious.
His aversion to CBDCs is crystal clear: he perceives them as a severe threat to American liberty. His stance isn’t just a campaign promise, but a position he has demonstrated during his tenure as Florida’s Governor.
Florida, under DeSantis’s leadership, has already barred the recognition of any CBDC as currency, an unprecedented move among U.S. states.
The ban, introduced in May, reflects DeSantis’s belief that state-level restrictions will stymie the Federal Reserve’s attempts to launch a CBDC. If the Fed goes ahead, he anticipates an onslaught of legal challenges.
Why is DeSantis skeptical about CBDCs?
DeSantis’s skepticism stems from his reading of the Federal Reserve’s intentions. He references a 2022 report by the Federal Reserve that expresses an inclination towards consulting with the U.S. legislative and executive branches, ideally leading to a law sanctioning a CBDC.
The Fed, however, maintains that it has yet to decide on creating a CBDC and has not endorsed any specific policy. Adding fuel to DeSantis’s anti-CBDC fire is his apprehension about the World Economic Forum (WEF).
He fears the WEF’s purported plan to encourage governments to eliminate cash and cryptocurrency transactions, inhibiting “undesirable purchases,” such as fuel and ammunition.
This viewpoint appears to be linked to comments made by Cornell University Professor Eswar Prasad at a WEF event, though Prasad holds no official position within the WEF.
Yet, DeSantis’s claims, despite their lack of precision, shed light on the current discourse surrounding CBDCs worldwide.
Many nations are introducing CBDCs, and a key feature is the tracking of transactions and curbing of illicit purchases – measures that are already part of existing financial systems.
Critics argue that these restrictions undermine the decentralization ethos integral to public cryptocurrencies like Bitcoin. DeSantis’s aggressive opposition to CBDCs sets him apart in the unfolding narrative around digital currencies.
As CBDC projects proliferate globally, with over 100 countries exploring the concept, DeSantis’s position echoes the concerns of those worried about privacy erosion and an increase in governmental control.
While CBDCs bring the advantages of digital assets, they also kindle controversy, especially within the cryptocurrency community. The U.S. Federal Reserve might not have immediate plans to issue a digital dollar, but the topic is increasingly making its way into political discourse.
With politicians like Robert F. Kennedy Jr. advocating for Bitcoin as part of their campaign platforms, the future of CBDCs in America remains a hot topic on the road to the 2024 elections. DeSantis’s stance on CBDCs represents a fierce debate that isn’t likely to subside anytime soon.
