The ongoing battle continues.
Will cryptocurrency be banned? This is a question that many of the FUDsters still pose. The reality is that horse already left the barn but some still hold onto it for argument sake.
Each day we see expansion within the industry that makes things even more difficult to control. The cryptocurrency industry is growing at an accelerated pace. It seems like allies pop up out of nowhere.
We can now count the Governor of Florida as being in that camp.
It is worth nothing that state is home to Francis Suarez, the pro-crypto Mayor of Miami. Perhaps some of his calls were heard in Tallahassee, the state's capital.
State Payments In Cryptocurrency
According to Governor Ron DeSantis, the state is going to accept cryptocurrency for payments. It appears this will apply to business taxes.
"We are working – and I've told state agencies – figure out ways where if a business wants to pay tax in cryptocurrency to Florida, we should be willing to accept that," he said.
He further clarified with this comment.
DeSantis specifically said that Florida is working on accepting bitcoin as tax payments.
Florida is the 3rd most populous state in the US with over 20 million people. This is more than 3.5 times the population of El Salvador, the first nation to make Bitcoin legal tender.
Having a state this populated accepted cryptocurrency as payment would be a huge feather in the pro-crypto cap. It is another example of how the lines are being drawn and the siding of crypto is expanding.
Even if the service is not widely used, as appears to be the case in El Salvador, the fact it exists is a defense against the moves counter to cryptocurrency's success.
Central Bank Digital Currency
The Biden Administration just put forth an Executive Order that pushes the different federal agencies to look into regulating cryptocurrency. Part of that Order is to determine the viability of a Central Bank Digital Currency aka "Digital Dollar".
This is something that concerns DeSantis, as it does most people involved in cryptocurrency.
DeSantis was clear to contrast his pro-crypto stance with state-controlled digital money proposals floating around Congress. DeSantis said he believes there are a lot of "hazards" related to a federally controlled digital dollar.
"I worry about the amount of power that would give someone in a central authority to basically be able to shut off access to purchasing certain goods," he said. "We'd be in uncharted territory."
We do not need to go into all the pitfalls of a CBDC. The key is to realize that it hands politicians (and bureaucrats) a great deal more power. We know the United States Congress has shown itself completely incapable of managing fiscal policy. Now they want control over monetary policy too.
Steps like Florida is taking could be a counter measure. If more state adopt the stance of being pro-crypto and working it into their payment systems, then people will be provided with alternatives.
It also will create sinks for the different currencies, enabling, at least to a degree, the circumventing of monopolization of a CBDC.
Buying Time
The biggest key in all of this is for the cryptocurrency to buy time. If a move by the State of Florida can help to offset the measures taken at a national level, then the overall situation.
We need to realize that cryptocurrency does not need government consent to succeed. It was designed to operate outside the reach of governments. This is unfolding in a manner similar to the Eurodollars system. The only difference is the world did not know what was happening when that was constructed.
Cryptocurrency is out in the open.
Since we are dealing with a technology, things simply need to evolve. Development takes time. Because of this, any delays by governments works to the industry's advantage. People are creating new applications on a daily basis.
Of course, we will welcome the aid of any government entities that happen to view cryptocurrency as an opportunity. Mayor Suarez made a lot of headlines with his pro-crypto stance, going as far as to start MiamiCoin. Last month the City accepted its first payment of $5.25 million from the mining of the token.
Florida Coin?
If Miami can have a coin that is mined and generates revenue, why could the same not hold for the State of Florida? Perhaps DeSantis would be interested in CityCoin expanding its program to the state wide level.
Even if that step is not taken, it does open the door for new opportunities. To start, it is illegal for government entities to hold digital assets on their balance sheet. This might present the move to remove that from the books.
Miami has to have the money gifted to them from the mining of its coin. If we see a change in the law, other cities within the state could follow suit.
We also could see the decision for certain entities to start buying Bitcoin and adding it to the Treasury. This certainly could take place at the state level. What better validation for cryptocurrency than government entities starting to hold it as part of their reserves.
For now, it will be interesting to watch if the state does start accepting some payment in the form of Bitcoin.
It will be a massive step forward in the acceptance of cryptocurrency.
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