Florida and North Carolina brace up to fight the imminent CBDC threat

Florida and North Carolina state authorities passed laws prohibiting the use of CBDCs, as the Biden administration encourages Fed to continue research on centralized digital money.


If Fed decides to roll out a CBDC trial, it will meet stiff opposition from at least two states. Florida and North Carolina have passed anti-central bank digital currency legislation that effectively bans the "surveillance money" on their territory.

In Florida, both the House of Representatives (116–1 majority) and Senate (34–5 majority) approved the bill, titled SB 7054, stating that the use of a CBDC as a "digital medium of exchange" will be forbidden in the state. Anti-CBDC legislation has been long advocated by Governor Ron DeSantis' who spoke out against the state-controlled digital money on many occasions.

The ban will stand irrespective of who the issuer is. The US central bank, federal agencies, and foreign governments are equally unwelcome with their centralized digital currencies. SB 7054 provisions will be effective as of July 1, 2023.

"The last thing that our country needs is a federally controlled centralized bank digital currency weaponized by the Biden Administration. It's just another way for Floridians to have their vital financial information surveilled by the Government. No one asked for this and Florida won't let it stand," Jimmy Patronis, the chief financial officer of the state of Florida, said in a press statement.

In North Carolina, the anti-CBDC bill was passed unanimously by the House of Representatives, with 118 members voting in favor and two absent. Now, it needs to pass the Senate to be signed into law. The legislation outlaws using CBDCs for any payments to the state and prohibits the state authorities from participating in any CBDC trials that Fed may run.

Interestingly, the Florida bill brought together Republicans and Democrats, unlikely allies on most occasions. The stance on CBDCs also unites opposing potential presidential candidates: DeSantis, a Republican, and Robert F. Kennedy Jr., a Democrat, who recently warned that "we should be wary since CBDCs are the ultimate mechanisms for social surveillance and control."

Kennedy Jr. also pointed out that "President Biden has weaponized FDIC, OCC + DOJ to force crypto-friendly banks to close their doors to crypto firms since Dec. 3." Last year, Biden signed the Executive Order on Ensuring Responsible Development of Digital Assets which calls for measures to "assess the technological infrastructure and capacity needs for a potential US CBDC in a manner that protects Americans' interests." The document also encourages "the Federal Reserve to continue its research, development, and assessment efforts for a US CBDC," signaling that it's only a matter of time before the CBDC goes live.