The Missouri Senate has introduced a new bill, SB 194, aimed at banning central bank digital currencies (CBDCs) as legal tender in the state. Sponsored by Senator Brattin, the bill proposes that public entities cannot accept or use CBDCs, while also changing the definition of “money” to exclude these digital currencies. Additionally, it requires the state to maintain gold and silver reserves and offers tax exemptions on capital gains from these precious metals. This legislative move reflects ongoing concerns about the implications of CBDCs on financial privacy and state sovereignty. Missouri joins other states in examining the role of government-issued digital currencies amidst broader national discussions on their regulation and impact.
Missouri Senate Takes a Stand Against CBDCs with New Bill
In a recent move, the Missouri Senate introduced Senate Bill 194 on December 1, aiming to ban central bank digital currencies (CBDCs) from being used as legal tender in the state. This bill, sponsored by Senator Brattin, not only prohibits public entities from accepting CBDCs but also changes the definition of “money” under the Uniform Commercial Code to exclude these digital currencies entirely.
One of the key provisions of SB 194 is a requirement for the State Treasurer to maintain gold and silver reserves that equal at least 1% of all state funds. Additionally, it provides a tax break for gold and silver by exempting certain capital gains from state income tax, aligning with the growing interest in alternative assets.
The bill raises important questions about CBDCs and their effect on financial privacy and state authority. It also bans public entities from participating in any tests of CBDCs conducted by the Federal Reserve or other federal bodies, reflecting concerns among lawmakers.
Earlier in 2024, Missouri’s legislature explored similar regulations concerning digital currencies, highlighting a commitment to scrutinizing government-issued digital money. As discussions about CBDCs unfold nationwide, Missouri is taking a firm stance, potentially setting a precedent for other states to follow.
This legislative action underscores the ongoing debate over the future of digital currencies and their impact on traditional financial systems.
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What is a CBDC?
A CBDC, or Central Bank Digital Currency, is a digital form of a country’s currency that is issued and regulated by the central bank. -
Why did the Missouri Senate introduce a bill against CBDCs?
The bill aims to prevent CBDCs from being considered legal money in Missouri, possibly to protect traditional currency and promote financial privacy. -
How would this bill affect people using money in Missouri?
If the bill passes, it means that CBDCs cannot be used as official payment for goods and services in Missouri, so people would continue to use cash and bank-backed digital money. -
What are the arguments for and against CBDCs?
Supporters say CBDCs can make payments easier and faster, while opponents worry about privacy, control by the government, and competition with traditional banking. - What happens next with the bill in the Missouri Senate?
After being introduced, the bill will go through discussions and votes. If it gets approved, it will move to the next steps, which could include approval by the state House and the governor.
