Presidential hopeful Ron DeSantis, in a conversation with former Fox News anchor Tucker Carlson, vehemently argued against the possible introduction of a digital dollar by the Federal Reserve. The discourse took place at an event spearheaded by the right-leaning Family Policy Alliance lobby group.
DeSantis, who has a long-standing aversion to Central Bank Digital Currencies (CBDCs) emphasized that any move towards the creation of a digital dollar would necessitate congressional authorization.
Despite this, he warned that the Fed might endeavor to push this financial innovation unilaterally – an act he contends is at odds with constitutional principles.
“If I’m the President, on day one, we will nix central bank digital currency,” DeSantis affirmed, expressing his hostility towards CBDCs.
The underlying cause of DeSantis’s staunch opposition is rooted in his belief that the Federal Reserve will exploit CBDCs to advocate an anti-cash, anti-crypto policy. The Florida Governor predicts a future where CBDCs usurp all other forms of legal tender, effectively granting the Fed the power to restrict purchases they deem unfavorable, such as fuel and ammunition.
The controversial issue of CBDCs has taken center stage as the 2024 electoral race intensifies. Many, especially within libertarian sections of the Republican Party, are apprehensive that such currencies might encroach upon the sacrosanct privacy rights of American citizens. There’s a growing chorus arguing that CBDCs could bestow governments with an unprecedented level of control over individual expenditure.
In his critique, DeSantis harnessed the emblematic values of America. He insinuated that proponents of CBDCs aim to establish a “social credit system” in the US, emphatically referring to CBDCs as a “threat to American liberty.”
DeSantis is not the lone voice in the wilderness expressing discontent with CBDCs. Republican contender Vivek Ramaswamy also shared similar sentiments. “Just like ESG [Environmental, Social, and Governance] came out of the 2008 financial crisis, central bank digital currencies are what is going to come out of this next one… This is likely where this is heading. It is a longer-term game to a disaster,” Ramaswamy said.
On the Democratic front, Bitcoin advocate Robert F. Kennedy Jr. has categorized CBDCs as tools of control, cautioning about their potential misuse.
DeSantis’s skepticism towards CBDCs has been consistent. In his capacity as the Florida governor, he ratified a law in May barring CBDCs from achieving legal tender status. The aspiring president is pushing Republican-led states to adopt similar deterrents against CBDCs. As part of this mission, he has reached out to a coalition of 20 states to counteract federal endorsement of CBDCs.
