The state of Missouri is taking a firm stance on central bank digital currencies (CBDCs) with the introduction of SB 194. This bill, sponsored by Senator Brattin, aims to ban CBDCs as legal tender within the state and prevent public entities from accepting or using these digital currencies.
One of the key provisions of SB 194 is the requirement for the State Treasurer to hold gold and silver reserves equal to at least 1% of all state funds. Additionally, the bill includes a tax exemption for capital gains on the sale or exchange of gold and silver, providing further support for precious metals within the state’s financial policies.
In a bold move, SB 194 also prohibits public entities from participating in any tests or pilot programs related to CBDCs conducted by the Federal Reserve or other federal agencies. This reflects concerns among some state legislators about the potential implications of CBDCs on financial privacy, monetary policy, and state sovereignty.
By modifying the definition of “money” under the Uniform Commercial Code to exclude CBDCs, Missouri is making a significant legal shift that could impact commercial transactions, contracts, and financial instruments within the state. This change may limit the legal recognition and enforceability of CBDC-based transactions.
Missouri’s legislative actions come in the midst of broader national and global discussions surrounding the adoption and regulation of CBDCs. While some see CBDCs as a way to improve efficiency and financial inclusion, others are wary of the centralized control, privacy issues, and potential impacts on traditional banking systems.
With the introduction of SB 194, Missouri joins other states in actively examining the role of government-issued digital currencies in their economies. This move underscores the state’s commitment to shaping its financial policies in response to the evolving landscape of digital currencies.