DeSantis grills Fed for considering digital central currency, argues it will be abused

Amber Jo Cooper contributed to this report.

TALLAHASSEE, Fla. (FLV) – In response to a U.S. Federal Reserve tweet promising that central bank digital currency would not be issued unless Congress and the U.S. president authorizes it, “ideally in the form of a [law],” Gov. Ron DeSantis said Americans “are wise enough to know” that such a currency would be abused.

“The Federal Reserve has made no decision on issuing a central bank digital currency (CBDC) & would not do so without clear support from Congress and executive branch, ideally in the form of a specific authorizing law,” the Federal Reserve said. “A CBDC would not replace cash or other payment options.”

The thread from the agency was crafted to answer the “FedNow” service, which is a new digital system launching in July that aims to enable businesses and individuals to send instant payments.

“Instant payments allow individuals and businesses to send and receive payments within seconds at any time of the day, on any day of the year, so that the receiver of a payment can use the funds almost instantly,” they said.

DeSantis slammed the agency for its suggestion that it is “ideal” for such an authorization for issuing a central bank digital currency, or CBDC, to come from a “specific authorizing law.”

“It is not merely ‘ideal’ that major changes in policy receive specific authorization from Congress; it is constitutionally required,” DeSantis said. “Unaccountable institutions cannot impose a CBDC on Americans. They will tell us that CBDC won’t be abused but we are wise enough to know better.”

“This wolf comes as a wolf.”

In March, DeSantis called for a total ban on CBDC in Florida.

“I am here to call on the legislature to pass legislation to expressly forbid the use of CBDC as money within Florida’s uniform commercial code,” DeSantis said at a Panama City press conference last month.

He said the proposal will make sure Florida continues to support innovation in the financial sector “while protecting against government surveillance over your personal finances.”

As of March 29, HB 7049, which addresses CBDC, is set to be considered by the House Judiciary Committee.

The Senate version, SB 7054, passed the Banking and Insurance Committee on April 5.

CBDC is a digital form of central bank money that is widely available to the general public.

DeSantis called out the notion of the government having a “direct view of all consumer activities.”

“Any way they can get into society to exercise their agenda, they will do it […] How do we know? Because we’ve seen this happen in other parts of the world,” DeSantis said.

DeSantis noted that central currency differs from traditional cryptocurrency, which is decentralized in nature.

The governor said the proposal would also prohibit any CBDC issued by a foreign reserve or government-sanctioned central bank.

“This will ensure that any effort to adopt a worldwide digital currency will never occur in the Free State of Florida,” he said.

DeSantis called for like-minded states to also adopt similar legislation into their uniform commercial code and to reject any changes to their uniform code that would formally recognize a central bank digital currency.

He spoke with Texas’ lieutenant governor and believes they may do something similar to Florida.

“I think it’s really important that states stand up to fight back against some of the things that are going on, or most of the things that are going on right now in Washington, because they don’t have your best interests at heart. They have their own power at heart,” DeSantis said. 

DeSantis said he has been talking to leaders in the Florida Legislature and hopes to sign it into law later this year.  

The governor said CBDC is part of a movement to “try to use the levers of economic power to control society and to impose an agenda on society.”

“They want to be able to impose their worldview on our society without being held accountable by any type of an electorate and that is wrong, and this idea of a central bank digital currency is also wrong,” DeSantis explained.

Editor’s note: This story was updated to include legislation filed addressing CBDC and to include words from Bryan Griffin, press secretary for Gov. Ron DeSantis.