Missouri Senate Proposes Bill To Ban CBDC As Legal Tender

According to PANews, the Missouri Senate introduced a bill on December 1, known as SB 194, aiming to prohibit central bank digital currencies (CBDCs) from being recognized as legal tender within the state. The proposed legislation seeks to prevent public entities from accepting or using CBDCs and intends to amend the definition of 'money' in the Uniform Commercial Code to exclude these digital currencies. Initiated by Senator Brattin, SB 194 outlines several provisions that could significantly impact Missouri's financial policies. Among these is a requirement for the state treasurer to maintain gold and silver reserves equivalent to at least 1% of the state's total funds. Additionally, the bill proposes reducing tax obligations on gold and silver by exempting state income tax on capital gains derived from the sale or exchange of these precious metals, which would otherwise be included in the taxpayer's federal adjusted gross income. Beyond the focus on precious metals, the bill explicitly prohibits public entities from participating in any CBDC-related tests or pilot projects conducted by the Federal Reserve or other federal agencies. This stance reflects growing concerns among some state legislators about the potential implications of CBDCs on financial privacy, monetary policy, and state sovereignty.