The Missouri Senate has introduced a bill prohibiting central bank digital currencies as legal tender and encouraging the state to hold more reserves in gold and silver.
Objectives of Bill SB 194
Introduced by Senator Rick Brattin on December 1, SB 194 aims to block public entities from participating in CBDC programs and mandates that the State Treasurer hold at least 1% of state funds in physical gold and silver. The bill also offers a capital gains tax exemption for transactions involving these metals.
Definition of Legal Tender
Under SB 194, CBDCs are excluded from the legal definition of 'money' in Missouri’s Uniform Commercial Code. Public entities would be prohibited from participating in federal pilot programs testing CBDC systems. The bill enhances the role of gold and silver by declaring them as legal tender, meaning they can be used to settle debts at their market value.
Potential Implications of the Bill
Supporters of SB 194 argue that it is a step toward preserving financial privacy and limiting centralized control over digital transactions. The requirement to store a portion of state funds in gold and silver is intended to strengthen financial stability by relying on historically stable assets. If passed, SB 194 could position Missouri as a state prioritizing financial independence and alternatives to federally controlled digital systems.
SB 194 reflects Missouri's move towards independence from centralized digital financial systems, emphasizing gold and silver as stable assets.
