The Missouri Senate introduces a bill to disqualify CBDCs as legal tender

The Missouri Senate introduced SB 194 on December 1, proposing to ban central bank digital currencies (CBDCs) as legal tender in the state. The bill seeks to prohibit public entities from accepting or using CBDCs and amend the definition of "currency" in the Uniform Commercial Code to exclude these digital currencies. SB 194, sponsored by Senator Brattin, outlines several provisions that affect Missouri's financial policies, including requiring the state treasurer to hold gold and silver reserves equal to at least 1% of the state's total funds. In addition, the bill reduces the tax liability of gold and silver because it "exempts from state income tax the portion of capital gains generated from the sale or exchange of gold and silver that would otherwise be included in the taxpayer's federal adjusted gross income." In addition to focusing on precious metals, the bill explicitly prohibits public entities from participating in any CBDC-related testing or pilot projects conducted by the Federal Reserve or other federal agencies. This position reflects the growing concerns among some state lawmakers about the impact of CBDCs on financial privacy, monetary policy, and state sovereignty.