Florida Law May Accidentally Ban Bitcoin with CBDC Ban

It is reported that last week, Florida passed a legislative proposal aimed at prohibiting the use of the National Central Bank Digital Currency (CBDC) as currency in its state. However, it is said that this move may accidentally prohibit Bitcoin, as the bill defines CBDC as a “directly verified” digital currency by foreign governments, but Bitcoin has been recognized as legal tender by El Salvador, “Verifying” in a non-technical sense (it is not yet clear whether El Salvador’s central bank or other government agencies operate fully verified Bitcoin nodes), but according to Wyman Duggan, a member of the Florida House of Representatives who supports the bill, they do not intend to ban Bitcoin together with CBDC, and if necessary, they may amend the bill. “. （blockworks）

Florida bill prohibiting CBDC or accidentally banning Bitcoin

Introduction

Florida’s recent proposal to ban the use of Central Bank Digital Currency (CBDC) as legal currency in Florida may also have unintentional implications for Bitcoin. The proposed legislation defines CBDC as a “directly verified” digital currency produced by foreign governments. However, Bitcoin has been recognized as legal tender by El Salvador, which could create issues for the new law.

Understanding the Proposed Bill

The proposed legislation in Florida aims to prohibit the use of CBDCs which are issued by foreign governments as legal currency in the state. The lawmakers believe that the use of such currencies could potentially undermine the sovereignty of the US. However, the bill’s definition of CBDC as a “directly verified” digital currency has led to confusion regarding its unintentional effects on Bitcoin.

How Bitcoin May Be Impacted

The characterization of CBDC as a “directly verified” currency has led to concerns that Bitcoin may be unintentionally included in the ban due to its recognition as legal tender in El Salvador. While there is no technical evidence that the Bitcoin nodes in El Salvador are directly verified by their central bank or government agencies, the lack of clarity around this issue leaves room for interpretation.

The Position of Florida’s House of Representatives

Wyman Duggan, a member of the Florida House of Representatives who supports the bill, clarified that the intention of the bill is not to target Bitcoin alongside CBDC. Rather, the proposal aims to protect the sovereignty of the US by limiting the use of foreign government-issued digital currencies. Duggan has also stated that, if needed, the bill could be amended to avoid accidentally banning Bitcoin.

Conclusion

In conclusion, while the proposed legislation in Florida is aimed at limiting the use of CBDCs as legal currency, its implications for Bitcoin are yet to be fully understood. The ambiguity around the definition of “directly verified” digital currency leaves room for debate on whether Bitcoin may be included in the ban. However, the Florida House of Representatives has clarified that the bill’s intent is not to target Bitcoin, and changes may be made if necessary.

FAQ

Q1) What is the proposed bill in Florida?

A1) The proposed bill aims to ban the use of CBDCs produced by foreign governments as legal currency in Florida.

Q2) Could the proposed bill accidentally ban Bitcoin?

A2) The bill’s definition of CBDC as a “directly verified” digital currency has raised concerns that Bitcoin may also be unintentionally banned due to its recognition as legal tender in El Salvador.

Q3) What is the position of Florida’s House of Representatives on Bitcoin and the proposed bill?

A3) Florida’s House of Representatives has stated that the proposed bill is not intended to target Bitcoin and may be amended if necessary to avoid accidentally banning it.