Paul Krugman, a Nobel Prize-winning economist and key proponent of the Keynesian school of thought, recently expressed his confusion over Florida governor Ron DeSantis’ opposition to central bank digital currency (CBDC). Krugman wonders if DeSantis is motivated by “general paranoia” or the fear that CBDCs may impede “un-woke activities such as tax evasion and money laundering”. In reality, the US does not yet have a CBDC system, with the Federal Reserve in the process of studying the idea.
Krugman posits that current paper-cash practices are becoming increasingly out of date in the world of digital finance, with anonymous cash reserves used to skirt financial reporting requirements; activities such as tax evasion and illegal drug purchases are possible, part of the reason why he believes CDSC’s may be a beneficial system. He also noted that popular cryptocurrency Bitcoin has aimed to fit the bill of a cash-like digital currency, but the Fed’s 2022 report on cryptocurrencies found that the high levels of volatility and potential for fraud and loss mean they do not fulfill this goal sufficiently.
Krugman believes that if a CBDC is introduced, state governments would not have the authority to prevent its use and that DeSantis’ opposition to them is to “protect the ability of criminals to evade taxes, launder money, buy and sell illegal drugs, and engage in extortion.” Krugman has also recounted stories of individuals ranting about how CBDCs are “going to take away our freedom”, which he ties in to a broader right-wing narrative of monetary “conspiracy theory craziness”.
In conclusion, Paul Krugman believes it is essential to understand that governor Ron DeSantis’ opposition to CBDCs has nothing to do with protecting citizens’ rights, but rather to accommodate the antics of criminals who partake in illegal activities. He sees the introduction of CBDCs as a critical move towards modernizing the financial infrastructure for legitimate purposes. Also, Krugman has used stories of people ranting about the ‘loss of freedom’ associated with CBDCs as one of many examples to showcase the extent of the conspiracy theorist-led craziness of the right-wing in this subject.
Yana Long
- 2023-04-15
Paul Krugman Confused by Governor DeSantis Opposing CBDCs
Nobel Prize-winning economist Paul Krugman has expressed confusion over Florida Governor Ron DeSantis' opposition to Central Bank Digital Currencies (CBDCs). His has pointed to criminals who engage in illegal activities as the reason why DeSantis is against CBDCs.
