The Missouri Senate introduced SB 194 on Dec. 1, proposing to ban central bank digital currencies (CBDCs) as legal tender within the state. The bill seeks to prohibit public entities from accepting or using CBDCs and modifies the definition of “money” under the Uniform Commercial Code to exclude these digital currencies.
Sponsored by Senator Brattin, SB 194 outlines several provisions affecting Missouri’s financial policies, including the requirement for the State Treasurer to hold gold and silver reserves equal to at least 1% of all state funds. Further, it also reduces tax liability for gold and silver as it
“exempts from state income tax the portion of capital gain on the sale or exchange of gold and silver that are otherwise included in the taxpayer’s federal adjusted gross income.”
In addition to addressing precious metals, the bill explicitly prohibits public entities from participating in any tests or pilot programs related to CBDCs conducted by the Federal Reserve or other federal agencies. This stance reflects growing concerns among some state legislators about the implications of CBDCs on financial privacy, monetary policy, and state sovereignty.
The modification of the Uniform Commercial Code’s definition of “money” to exclude CBDCs is a notable legal shift. This change could have significant implications for commercial transactions, contracts, and financial instruments within Missouri, effectively limiting the legal recognition and enforceability of CBDC-based transactions.
Earlier in 2024, Missouri’s legislature considered related measures regarding digital currencies. House Bill 2780, introduced in February, sought to prevent public entities from accepting or using CBDCs and passed the House in April with substantial support. The Senate also reviewed companion legislation, such as SB 1352, indicating a sustained legislative focus on regulating digital currencies at the state level.
Missouri’s legislative actions occur amid broader national and global discussions on the adoption and regulation of CBDCs. While some view CBDCs as an evolution in digital payment systems with the potential to enhance efficiency and financial inclusion, others express concerns over centralized control, privacy issues, and impacts on traditional banking systems.
By introducing SB 194, Missouri positions itself among states actively scrutinizing the role of government-issued digital currencies in their economies.
The post Missouri Senate introduces bill to disqualify CBDCs as legal tender appeared first on CryptoSlate.
