Good morning. Here’s what’s happening:

Prices: Price of Meme Coins soars as Crypto giants stumble amid mixed signals in Asia

Insights North Carolina, Florida and other states have banned CBDCs. Welcome to the wedge topic of the 2024 elections.

Bitcoins Sinks Slightly

Good morning Asia.

Crypto is confused as the East starts its trading day.

Bitcoin is down by 0.5% at $28,869, and ether has fallen 1.45% to $1878. The PEPE coin, which is themed around a frog, has risen almost 80% over the last 24 hour. We’ll have to see how long this lasts, as clouds indicating a bearish sentiment are forming above the frog currency.

No one can make sense of the market. CryptoQuant’s data indicates that the market is under high pressure due to an increase in exchange reserves. There’s also a high Coinbase Premium and a Korean Premium, which indicate a lot of purchasing pressure.

In the world of macroeconomic indicators, China’s economic growth appears to be slowing.

The Caixin China PMI for General Manufacturing, which measures performance in the manufacturing sector, was released on Thursday (Asia Time), and showed that things were dropping, but not grim.

Caixin’s PMI fell to 49.5% in April 2022. This was the first decline in factory activity since early January, due to fears of a global slowdown and a downturn in property values. According to a press release, input prices fell for the first seven-month period, leading to the steepest fall in selling prices since the end of December 2015. This was due to firms trying to attract new customers.

Singapore’s QCP stated in a note published recently that the market was “confused and rangy”, because it is caught between two minds.

QCP posted on Telegram that “this lack of direction has resulted in an absolute crushing implied volatility across all asset classes.”

The trading firm stated that the USD’s positioning is heavily biased to the short end due to conflicting narratives about a hawkish Fed, strong employment, and sticky inflation.

The Friday job numbers are likely to be a good indicator of which side wins the narrative equation.

The Biggest Gainers

Biggest Losers

The CBDCs stir strong opinions in Florida

The U.S. has a few hot-button political issues: guns and health care, illegal migration, and LGBT rights.

Ron DeSantis, the possible Republican candidate for president and Florida governor, has taken a position on these issues in the state legislature. His tenure as Governor is shaping the narrative for the next federal elections, whether you agree or disagree with him.

What issue is the most common one that his office receives phone calls about? Samuel Armes is the president of Florida Blockchain Business Association and he told CoinDesk that central bank digital currencies are also known as CBDC.

Armes stated that “if CBDCs are as intrusive on civil liberties as the majority believes they are, then we have no time to wait.” “At the very least, the feds will try to obtain whatever they want.” It’s up to us to stop this.

As CoinDesk reported previously, CBDCs have unexpectedly become an election issue.

Recently, the Florida Senate passed the anti-CBDC legislation drafted by Armes and Florida Blockchain Business Association.

The U.S. does not have any concrete plans for issuing a CBDC. China is continuing to roll out its CBDC, eCNY. As of January, 0.13% was the total circulation of Chinese renminbi yuan. While China is not the only country that has CBDCs in place, the Bahamas Sand Dollar and Bank of Jamaica’s JAM DEX are.

Republicans claim that a CBDC will give the government far too much power. Armes points out that immigrants to Florida who fled authoritarian countries such as Cuba or Venezuela are horrified at the idea.

No money in Florida

Florida’s bill states that CBDCs won’t be recognized as money by the state. Armes believes that other anti-CBDC legislation, whether it is still in the works or has passed, will take a different approach, which is good because “there won’t be a perfect policy.”

Florida’s refusal to recognize CBDCs as currency will probably put it on the warpath with the federal government. A state that refuses to accept a certain type of money authorized by the federal authorities could face a lawsuit because it is interfering with its constitutional right to regulate it.

Amers says that if the federal court sues Florida the legal battle will delay the implementation and give states time to come up with different strategies for countering CBDCs. The North Carolina House of Representatives also voted to ban CBDCs this week.

He told CoinDesk that “suing complicates things, and bogs them down in administrative state, to the point where by the time these are implemented, many disputes have caused major delays.” “It will be a federalism problem, just like any other.”

CBDCs could undermine the autonomy and state-chartered bank’s rights, says Armes. He cites Caitlin and Custodia’s long fight with the federal government as an example.

“We have had a dual banking system with the Federal Reserve and the States, but it is now becoming a federal banking systems. Armes added that a CBDC would solidify this further.

Lobbyists ready to go

DeSantis’ stance on CBDCs is counterintuitive, but it seems that he has touched a nerve, despite what may happen in Washington, D.C. Some might argue Republicans should support CBDCs to prevent deplatforming. A CBDC would theoretically provide a constitutional defence that could not be used against private companies.

This is an especially curious issue, as unlike other national discussions that pit states against Washington D.C., like abortion and guns, this one still hasn’t taken place; it’s not currently on the agenda. There are lobbyists on Capitol Hill who will be ready to act when the issue is brought up.

DeSantis continues to do well in the polls despite the controversy.

Important events

1:00 p.m. HKT/SGT(5:00 UTC) Eurozone Retail Sales (YoY/April)

4:45 p.m. HKT/SGT (8:30 UTC). United States nonfarm payroll (April).

4:30 p.m. HKT/SGT(8:30 UTC) Canada Unemployment Rate (April)

CoinDesk TV

If you haven’t seen it yet, here is the latest episode of “All About Bitcoin” on CoinDeskTV.

In our “CoinDesk Turns 10”, a series of articles that look back on seminal crypto stories, “All About Bitcoin,” closely examined the rise of Mt. Jeff Wilser, author, journalist and CoinDesk Contributor, discussed the rise and fall of defunct crypto exchange Mt. Joe Orsini, a digital asset strategist, also discussed his view on bitcoin (BTC), whose dominance has increased dramatically since the beginning of the U.S. financial sector’s instability two months ago.

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CoinDesk turns 10: What we learned from reporting a decade of crypto history : In our month-long series, looking back on 10 years of CoinDesk, there are many failures. Michael Casey, Chief Content Officer at CoinDesk, says that in many cases, the failures of the past have allowed the industry grow.

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James Rubin is the editor.