The battle for the future of money is heating up in the United States, with some states proposing to ban the "digital dollar" before it even exists, while others quietly pass laws to make it a reality. It's a conflict that has raised concerns about privacy, surveillance, and control.

Florida Governor Ron DeSantis is leading the charge against the digital dollar, announcing a proposed bill to ban it in his state. According to a statement from the governor's office, the legislation is intended to "protect Floridians from the Biden administration's use of financial sector weapons through a central bank digital currency (CBDC)."

DeSantis's bill seeks to prohibit the use of the digital dollar or CBDC as money in Florida and to create "protections" against digital currencies issued by central banks belonging to nations sanctioned by the United States. He hopes that other states will follow suit and establish similar prohibitions to "fight this concept throughout the country."

In the view of the Republican governor, a digital currency "has to do with surveillance and control" of citizens, and it "will stifle innovation." adding that "Florida will not side with the economic central planners. "We will not adopt policies that threaten economic freedom and personal security."

Senator Ted Cruz of Texas is also pushing for a ban on the digital dollar, citing concerns about privacy implications. He argues that a digital dollar "could be used as a financial surveillance tool by the federal government."

As Other States Quietly Take Steps to Move the Digital Dollar Forward...

President Biden issued an executive order last year that instructs several government offices to research creating a central bank digital currency, since then things have appeared to be moving forward with no official updates from the federal government.

The silence seems to be deliberate when it comes to the most recent steps targeting the Uniform Commercial Code (UCC), which are laws that every state has, and every state controls. 

Intended to make sure states can easily conduct business with each other, the digital dollar may be the first time there's been major disagreements between some states and could result in the 'Uniform' codes ending up far from uniform nation-wide. 

Just this week South Dakota Governor Kristi Noem vetoed House Bill 1193 which would have opened the doors for the digital dollar in her state by amending their UCC to allow for fully electronic payments backed only by electronic records "this is extremely troubling. If Congress were to someday create an official electronic currency that is programmable, it would pose significant threats to Americans’ liberty and privacy rights. Why, then, would so many lawmakers want to make it easier for such a currency to be used in their states?"

Both republicans and democrats have made more public statements implying they are against the digital dollar, yet both parties have been found slipping the verbiage needed to make it happen into bills in their states, now there are similar bills headed to vote soon in 20 more states including in Arkansas, Montana, New Hampshire, North Dakota, Tennessee, Texas, and California.

One Major Roadblock Could Still Stop the Digital Dollar from Happening...

Not because they share any of the same concerns citizens have voiced - but nonetheless, they hate the idea and they may have enough power over politicians to get their way - the banks.

Banks see the Digital Dollar as a way for the government to become their biggest competitor.  Imagine - your job pays you in digital dollars, they're stored in an app on your phone, and virtually every place you would spend money accepts it, what do you need a bank for? 

While banks would still have a role when it comes to investing, lending, and securing larger business and personal accounts, the average person could go months, or even years without needing to interact with a bank, and have no need for a personal account. 

A battle with significant consequences...

Both for the future of our economy and the role of the government in our financial lives. Will we become a cashless society dominated by a digital dollar, or will we maintain the status quo? 

Until recently, this all felt like something so far in the future it was hard to really concern yourself with - but as we begin seeing real laws designed to move plans for the digital dollar forward proposed in multiple states, the potential implications are beginning to feel very real.

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Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News

Former CIA turned whistleblower Edward Snowden calls central bank digital currencies the 'evil twin' of decentralized cryptocurrencies like bitcoin. For him, CBDCs - as they are known as Central Bank Digital Currencies - are "crypto-fascist" tools.

"A Perversion Of Cryptocurrency..."

The computer specialist, who resides in Russia as a fugitive from US justice for leaking thousands of 'top secret' documents wrote on his personal blog.

"I will tell you what a CBDC is NOT—it is NOT, as Wikipedia might tell you, a digital dollar. After all, most dollars are already digital, existing not as something folded in your wallet, but as an entry in a bank’s database, faithfully requested and rendered beneath the glass of your phone.

Instead, a CBDC is something closer to being a perversion of cryptocurrency, or at least of the founding principles and protocols of cryptocurrency—a cryptofascist currency, an evil twin entered into the ledgers on Opposite Day, expressly designed to deny its users the basic ownership of their money and to install the State at the mediating center of every transaction. "

Snowden, values ​​privacy across the board, including financially, which is why the idea of an 'official state ledger' that can be continuously scrutinized and eternally reviewed alarms him.

Where Things Stand Now...

The 'Digital Yuan' which is the CBDC to be issued by the Central Bank of China in the 'advanced stage' of testing - total anonymity is not possible and the Government decides who can have permission to access the centralized database in which transactions are recorded.

Both the United States and European Union say they're in the process of evaluating the benefits of issuing their own CBDC's, the 'digital dollar' and 'digital euro'.

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Author: Mark Pippen
London News Desk / Breaking Crypto News

The Central Bank Digital Currency (CBDC) is currently in the process of research and development at many financial institutions around the world, and is the subject of debate among global financial transactions and local governments as each makes its own decisions.

Completely separate from the cryptocurrency market, Ripple is now developing new solutions for traditional banks launching CBDC's and has announced that it has implemented a pilot program with privacy locks that may be useful in this market.

Perhaps Ripple is trying to secure their future, if challenges that their XRP token was launched illegally don't go their way.

XRP's Tech To Be Used...

Although with a new purpose, they're pitching the same tech XRP transactions currently use, stating:

"Transactions on the CBDC Private Ledger are verified by the same consensus protocol used by the XRP Ledger, which is far less energy intensive, and therefore less expensive and 61,000 times more efficient than public blockchains that leverage proof-of-work.

In addition to leveraging the XRP Ledger technology, the CBDC Private Ledger is also supported by RippleNet technologies, and the Interledger suite of protocols to enable ultra-high throughput use-cases such as micro-payments."

No Longer A Matter Of  "If" But "When"...

CBDC's will become commonplace, that much is obvious. The US is in early stages of developing theirs, and even smaller countries such as Lithuania and the Bahamas have announced their digital currencies.

However, currently all eyes are on China preparing to launch their "digital yuan".

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Author: Justin Derbek
New York News Desk
Breaking Crypto News