Missouri is close to passing a law that bans central bank digital currency (CBDC) while also recognizing gold and silver as legal tender.
The Missouri state government is actively promoting measures to prevent the development and use of CBDC. Senate Bill 194 (SB 194), introduced by Republican Senator Rick Brattin on December 1, proposes amendments to the state code to prohibit entities from recognizing or participating in CBDC testing. The bill also requires the exclusion of CBDC from the definition of currency in the state's Uniform Commercial Code (UCC).
A noteworthy point in the bill is the requirement for the Missouri state treasurer to hold at least 1% of state funds in the form of gold and silver. Additionally, the bill proposes an exemption from capital gains tax for precious metal transactions and recognizes gold and silver as legal tender, to be traded at market price plus fees.
SB 194 is not Missouri's first attempt to limit CBDC. Previously, bills such as SB 1352, HB 2780, SB 826, SB 736, and SB 866 were submitted to control or ban CBDC, although they were not successful. This persistence reflects the deep concerns of many lawmakers about the potential impacts of CBDC. The recognition of gold and silver as legal tender, along with the exemption of capital gains tax for precious metal transactions, reflects a trend towards seeking alternative financial options and shows caution towards digital currency.
If SB 194 is passed, it will be a significant turning point in the debate over CBDC in the U.S. Missouri will join Louisiana and North Carolina, two states that have recently passed similar laws. This trend reflects the growing opposition to CBDC at the state level, with concerns about privacy, security, and financial control.
The impact of this bill, if enacted, could extend beyond Missouri's borders, encouraging other states to consider similar measures. This could create a wave of CBDC opposition nationwide, occurring alongside federal efforts, such as the U.S. House passing the Anti-State CBDC Surveillance Act on May 23.
