Florida Governor Ron DeSantis has proposed a law that would prohibit the use of a federally adopted central bank digital currency as money within the state, according to a Monday release. "Today’s announcement will protect Florida consumers and businesses from the reckless adoption of a 'centralized digital dollar' which will stifle innovation and promote government-sanctioned surveillance," DeSantis said in a statement. While the U.S. has not yet created a CBDC -- a central bank-issued digital currency representing a nation's fiat currency -- both the Biden administration and the Federal Reserve have been assessing the potential risks and benefits since last year. DeSantis' proposed law would also forbid the use of a CBDC issued by a foreign central bank, calling on other states to adopt similar restrictions . Here's an in-depth take on what CBDCs are and how they are different from cryptocurrencies. In January, Bank of America argued that CBDCs are the future of money and payments as most of the globe explores them . Dear readers : We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.
