Krugman and DeSantis Clash Over Digital Currency and Federal Reserve

Economist Paul Krugman criticized Florida Governor Ron DeSantis' opposition to a central bank digital currency (CBDC), suggesting that DeSantis may be motivated by "general paranoia" and influenced by individuals who fear a digital currency could hinder "un-woke activities such as tax evasion and money laundering." Krugman argued that if the Federal Reserve creates a CBDC, it is "highly unlikely that a state government would have the right to prohibit its use." Krugman also noted that the current financial system is already largely digital and that some people do not have bank accounts or trust banks.