Embracing Florida’s Monetary Sovereignty: the Anti-CBDC bill

Florida CBDC

In the grand narrative of history, Florida finds itself poised like a seasoned surfer, anticipating the offshore swells that follow the storm of federal activity. As the state carves its path through the ever-changing financial landscape, it remains steadfast in championing the cause of monetary independence and fiscal self-determination. Guided by the adept hand of Governor Ron DeSantis, Florida embodies a sense of resilience and determination, navigating the shifting currents of economic freedom with grace and the warmth of individual liberty.

In the context of digital currencies, stablecoins have emerged as an important development. These cryptocurrencies are designed to maintain a stable value by pegging them to a reserve of assets or a reference currency. Understanding the role of stablecoins in the broader financial ecosystem provides a more nuanced perspective on DeSantis’ proposed bill. There are generally three types of stablecoins:

  • Fiat-collateralized stablecoins: These are backed by a reserve of fiat currency, such as the US dollar, held in a bank or other financial institution. For every stablecoin issued, there is an equivalent amount of fiat currency held as collateral.
  • Crypto-collateralized stablecoins: These are backed by a reserve of other cryptocurrencies, often requiring over-collateralization to account for the inherent volatility of the backing assets.
  • Algorithmic stablecoins: These are not backed by any reserve assets. Instead, they use algorithms and smart contracts to automatically adjust the supply of the stablecoin in response to changes in demand to maintain its pegged value.

DeSantis’ proposed bill specifically targets CBDCs, which are centralized digital currencies issued by a central bank, and not stablecoins. However, the bill’s implications for stablecoins’ regulatory standing within the state of Florida depend on the final language of the legislation. One possible strategy for the Florida Legislature could be to distance itself from the Federal Reserve by requiring any stablecoin issuer to keep “fiat-backed” tokens with a state-chartered bank. This would likely not apply to over-collateralized algorithmic stablecoins, but it is not inconceivable that the Florida Legislature might decide to further distance itself and its banking system from the Federal Reserve.

For the bill to become law, it must pass through the Florida Legislature, which is composed of the Florida House of Representatives and the Florida Senate. The bill would likely be introduced in either chamber, referred to relevant committees, and then debated and voted upon. If approved by both chambers, the bill would be sent to the Governor for signature. The legislative process may also involve a committee providing recommendations, similar to the Compassionate Use Act of 2014.

In the spirit of cooperative federalism, DeSantis’ proposed bill also encourages likeminded states to join Florida in adopting similar prohibitions within their respective Commercial Codes. The collective power of the states, united by the principles of federalism as articulated through mountains of Supreme Court case law, could stymie the advancement of CBDCs on a national scale.

Drawing on the confidence of CJ Hobgood charging at a maxed-out Teahupo’o, Governor DeSantis leads Florida with unyielding determination and resilience. The state skillfully navigates the shifting currents of economic freedom, guided by the warm embrace of individual liberty. This bold action sets the tone and promises to have far-reaching ramifications across the globe, as Florida surfs the edge of innovation and adaptation, inspiring others to follow in its wake.

A copy is proposed bill can be found below for reference and be found here:


A bill to be entitled

An act relating to central bank digital currency; amending s. 671.201, F.S.; defining the term “central bank digital currency” and revising the definition of the term “money” for purposes of the Uniform Commercial Code; amending ss. 328.0015, 559.9232, 563.022, and 668.50, F.S.; conforming cross-references to changes made by the act; providing an effective date.

Be It Enacted by the Legislature of the State of Florida:

Section 1.  Subsections (10) through (46) of section 671.201, Florida Statutes, are renumbered as subsections (11) through (47), respectively, present subsections (24) and (26) of that section are amended, and a new subsection (10) is added to that section, to read:

671.201  General definitions.—Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other chapters of this code which apply to particular chapters or parts thereof, have the meanings stated. Subject to definitions contained in other chapters of this code which apply to particular chapters or parts thereof, the term:

(10) “Central bank digital currency,” means a digital currency, a digital medium of exchange, or a digital monetary unit of account issued by the United States Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system, that is made directly available to a consumer by such entities. The term includes a digital currency, a digital medium of exchange, or a digital monetary unit of account issued by the United States Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system, that is processed or validated directly by such entities.

(25) “Money” means a medium of exchange that is currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries. The term does not include a central bank digital currency.

(27) A person “notifies” or “gives” a notice or notification to another person by taking such steps as may be reasonably required to inform the other person in ordinary course, whether or not the other person actually comes to know of it. Subject to subsection (28), a person “receives” a notice or notification when:

(a) It comes to that person’s attention; or

(b)  It is duly delivered in a form reasonable under the circumstances at the place of business through which the contract was made or at another location held out by that person as the place for receipt of such communications.

Section 2. Paragraphs (c), (j), and (n) of subsection (2) of section 328.0015, Florida Statutes, are amended to read:

328.0015 Definitions.—

(2)The following definitions and terms also apply to this part:

(c)”Conspicuous” as defined in s. 671.201(11).

(j)”Representative” as defined in s. 671.201(37).

(n)”Send” as defined in s. 671.201(40).

Section 3. Paragraph (f) of subsection (2) of section 559.9232, Florida Statutes, is amended to read:

559.9232 Definitions; exclusion of rental-purchase agreements from certain regulations.—

(2)A rental-purchase agreement that complies with this act shall not be construed to be, nor be governed by, any of the following:

(f)A security interest as defined in s. 671.201(39).

Section 4. Paragraph (g) of subsection (2) of section 563.022, Florida Statutes, is amended to read:

563.022 Relations between beer distributors and manufacturers.—

(2)DEFINITIONS.—In construing this section, unless the context otherwise requires, the word, phrase, or term:

(g)”Good faith” means honesty in fact in the conduct or transaction concerned as defined and interpreted under s. 671.201(21).

Section 5. Paragraph (d) of subsection (16) of section 668.50, Florida Statutes, is amended to read:

668.50 Uniform Electronic Transaction Act.—


(d)Except as otherwise agreed, a person having control of a transferable record is the holder, as defined in s. 671.201(22), of the transferable record and has the same rights and defenses as a holder of an equivalent record or writing under the Uniform Commercial Code, including, if the applicable statutory requirements under s. 673.3021, s. 677.501, or s. 679.330 are satisfied, the rights and defenses of a holder in due course, a holder to which a negotiable document of title has been duly negotiated, or a purchaser, respectively. Delivery, possession, and indorsement are not required to obtain or exercise any of the rights under this paragraph.

Section 6. This act shall take effect July 1, 2023.

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