Presidential hopeful Ron DeSantis is taking a strong stance against central bank digital currencies (CBDCs), promising their prohibition in the United States if he wins the presidency. In an impassioned address at the Family Leadership Summit on July 14, DeSantis shared his staunch opposition to a digital dollar, asserting, “If I am the president, on day one, we will nix central bank digital currency. Done. Dead. Not happening in this country.”
DeSantis has been consistent with his critique of CBDCs. Back in May, he championed a bill in Florida blocking the usage of federal CBDCs as a form of legal tender, and extending the ban to foreign CBDCs. He voiced concerns over a potential “massive transfer of power from consumers to a central authority.”
DeSantis isn’t alone in his skepticism towards CBDCs. Critics worldwide argue these digital assets could pose a threat to individual privacy and potentially grant governments excessive control. Some, however, see CBDCs as a way to increase adoption of digital assets and a global application of blockchain technology. The critical inquiry remains: what do CBDCs offer to the people that conventional fiat currencies or cryptocurrencies do not?
Concerns around CBDCs aren’t baseless. A recent report from Pedro Magalhães, founder of Iora Labs, highlighted some alarming capabilities of Brazil’s pilot CBDC. His analysis of the source code revealed the potential to freeze funds and reduce account balances. While governments may downplay these possibilities initially, their mere existence within the system should serve as a red flag.