Two months ago, I talked about the push toward central bank digital currencies in several countries, including our own. Earlier this month, John Stossel sat down with Governor Ron DeSantis. One of the topics was the US government’s plan for a central bank digital currency.
The governor makes it very clear what he thinks about a CBDC. He warns, “Sometimes government does things that may appear to be benevolent but really are kind of like a wolf in sheep’s clothing.” Instead, he says, “This is a wolf coming as a wolf.”
The Biden administration says a CBDC will “protect consumers, investors … and the environment.” The governor responded that the last statement is a “tell.” The government, he argues, would impose certain criteria. “You’re filling up too much (with gas). Wait a minute — climate change. You can’t be doing that! You bought another firearm?”
Lest you think that would never happen, let me remind you about what happened in Canada to the truckers protesting the vaccine rules. The government blocked their bank accounts. That would be even easier with a CBDC.
Ron DeSantis also questions the legality of a CBDC. “The Federal Reserve has come out and said, we would only do it after consulting with the legislative and executive branches. Ideally, we’d get specific congressional authorization.” The governor responded that this isn’t just ideal, it is constitutionally required.
This debate will end up in Congress. Senator Elizabeth Warren argues that “Legitimate digital public money could help drive out bogus digital private money.” Senator Ted Cruz has already introduced legislation to prohibit the Federal Reserve from developing a central bank digital currency.
It’s time for debate to begin in Congress on the future of digital currency.