The Missouri Senate launched SB 194 on Dec. 1, proposing to ban central financial institution digital currencies (CBDCs) as authorized tender throughout the state. The invoice seeks to ban public entities from accepting or utilizing CBDCs and modifies the definition of “cash” beneath the Uniform Industrial Code to exclude these digital currencies.
Sponsored by Senator Brattin, SB 194 outlines a number of provisions affecting Missouri’s monetary insurance policies, together with the requirement for the State Treasurer to carry gold and silver reserves equal to at the very least 1% of all state funds. Additional, it additionally reduces tax legal responsibility for gold and silver because it
“exempts from state earnings tax the portion of capital achieve on the sale or change of gold and silver which can be in any other case included within the taxpayer’s federal adjusted gross earnings.”
Along with addressing valuable metals, the invoice explicitly prohibits public entities from taking part in any assessments or pilot applications associated to CBDCs carried out by the Federal Reserve or different federal companies. This stance displays rising issues amongst some state legislators concerning the implications of CBDCs on monetary privateness, financial coverage, and state sovereignty.
The modification of the Uniform Industrial Code’s definition of “cash” to exclude CBDCs is a notable authorized shift. This alteration may have important implications for industrial transactions, contracts, and monetary devices inside Missouri, successfully limiting the authorized recognition and enforceability of CBDC-based transactions.
Earlier in 2024, Missouri’s legislature thought-about associated measures relating to digital currencies. Home Invoice 2780, launched in February, sought to stop public entities from accepting or utilizing CBDCs and handed the Home in April with substantial help. The Senate additionally reviewed companion laws, resembling SB 1352, indicating a sustained legislative concentrate on regulating digital currencies on the state degree.
Missouri’s legislative actions happen amid broader nationwide and world discussions on the adoption and regulation of CBDCs. Whereas some view CBDCs as an evolution in digital fee programs with the potential to boost effectivity and monetary inclusion, others specific issues over centralized management, privateness points, and impacts on conventional banking programs.
By introducing SB 194, Missouri positions itself amongst states actively scrutinizing the position of government-issued digital currencies of their economies.