Missouri Senate Introduces Bill to Ban CBDCs as Legal Tender
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.
Key Provisions of SB 194
- State Treasurer required to hold gold and silver reserves equal to at least 1% of all state funds
- Reduction in tax liability for gold and silver
- Prohibition on public entities participating in CBDC-related tests or pilot programs
Legal Implications of the Bill
The modification of the Uniform Commercial Code’s definition of “money” to exclude CBDCs could have significant implications for commercial transactions, contracts, and financial instruments within Missouri, effectively limiting the legal recognition and enforceability of CBDC-based transactions.
Legislative Focus on Digital Currencies
Earlier in 2024, Missouri’s legislature considered related measures regarding digital currencies, indicating a sustained legislative focus on regulating digital currencies at the state level.
National and Global Discussions on CBDCs
Missouri’s legislative actions occur amid broader national and global discussions on the adoption and regulation of CBDCs, reflecting concerns over centralized control, privacy issues, and impacts on traditional banking systems.
Missouri’s Stance on Government-Issued Digital Currencies
By introducing SB 194, Missouri positions itself among states actively scrutinizing the role of government-issued digital currencies in their economies.
