Responding to Ron DeSantis’ Proposal to Ban CBDCs
Akash Mahendra, director at Haven1 Foundation and portfolio manager at Yield App, believes that banning central bank digital currencies (CBDCs) in the United States, as proposed by Ron DeSantis, could have negative consequences. Mahendra states that the digitization of money is inevitable and CBDCs will eventually be integrated into existing payment systems. He emphasizes that cryptocurrencies offer unique features like immutability, privacy, transparency, decentralization, and scarcity, which differ from CBDCs. Mahendra suggests that if the US government establishes a CBDC, it should be based solely on its technological advantages and merits. He points to examples in the UK where companies collaborated with central banks to develop APIs for CBDCs.
- Mahendra believes that cash and cryptocurrencies can coexist alongside a government-issued currency.
- He emphasizes that individuals should have the freedom to choose their preferred payment methods.
- CBDs could help unbanked Americans and reduce criminal activity and cross-border fees.
DeSantis’ Stance on Crypto
Ron DeSantis, the US presidential candidate, has made pledges to ban the use of central bank-backed digital currencies. He has criticized the Biden administration’s stance on crypto and accused them of wanting surveillance and control. However, DeSantis has expressed support for decentralized cryptocurrencies. In a Twitter Spaces event with Elon Musk, he promised to protect bitcoin if elected as president.
Hot Take
While banning CBDCs may seem like a way to protect the decentralization and unique features of cryptocurrencies, it may hinder the inevitable digitization of money. It is important to consider the potential benefits CBDCs can bring, such as financial inclusion and reduced fees, while ensuring individuals have the freedom to choose their preferred payment methods.
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