Florida’s Governor Ron DeSantis has endorsed a bill that limits the application of central bank digital currencies (CBDCs) within the state, as reported by local media. DeSantis had earlier in March urged the state legislators to craft this bill.
The newly ratified law disallows the use of a CBDC of the United States as legal tender under Florida’s Uniform Commercial Code (UCC). It further proscribes the use of CBDCs issued by foreign governments and encourages other states to enact similar restrictions in their respective commercial codes.
At the bill’s signing event, DeSantis expressed that his decision was influenced by the current U.S. administration, led by President Joe Biden, and its exploration of this nascent financial technology. He noted that despite the U.S. not having a CBDC or any immediate plans to roll one out, he believes the exploration implies an intent to do so.
“If they didn’t have plans to implement this, they wouldn’t have studied it,” he remarked. DeSantis further opined that the issuance of a U.S. CBDC would signify a significant power shift from consumers to a centralized authority.
He also perceived the possible launch of a CBDC as a threat to existing cryptocurrencies, stating, “I believe they aim to marginalize and abolish other forms of digital assets like cryptocurrencies because they lack control over them, which they detest.”
The enacted bill introduces modifications to Florida’s prevailing commercial code. DeSantis cited a growing trend among states to incorporate CBDCs into their Uniform Commercial Codes, which he believes is influenced by powerful entities. He said:
“We examined this and concluded, ‘… We are not going to include central bank digital currency in our commercial code,’ but we also decided, ‘… We need to implement safeguards for Floridians against this,’ and so we will specify in the Uniform Commercial Code that we do not recognize CBDC.”
Despite the allegations, the Uniform Law Commission has made efforts to quash any insinuations that it endorses the adoption of CBDC, even releasing a recent statement to clarify its stance.
John Montague, a legal expert from Florida-based Montague Law, informed Cointelegraph: “This bill implies that transactions involving CBDCs won’t enjoy the typical UCC protections, which might discourage entities or individuals from conducting such transactions using CBDCs.” He continued, “The UCC can impose obligations and modify rights of third parties, even without their explicit contractual agreement. Florida possesses the power to amend this definition.”
The law will be operational from July 1.
