US Senate Bills Bash CBDC’s ‘Money’ Definition – A US Showdown

The proposed bills could pose substantial obstacles to the implementation of a Central Bank Digital Currency (CBDC) in the United States.

Bills challenging the classification of a central bank digital currency (CBDC) as money have been introduced in Utah, South Carolina, South Dakota, and Tennessee. If enacted, these bills could impede the progress of a CBDC in the United States.

State Senator Frank Niceley submitted a bill to the Tennessee Senate on Jan. 12, aiming to modify the definition of money under the Tennessee Uniform Commercial Code (UCC). His proposed amendment would explicitly exclude any central bank digital currency from being considered money.

The UCC serves as a comprehensive and standardized set of laws regulating commercial transactions within the United States. It establishes a consistent framework for business dealings and transactions that spans across various states.

Representative Tyler Clancy presented House Bill 164 in the Utah House of Representatives on Jan. 4. The bill outlines central bank digital currency as a digital form of money issued by government entities, including the U.S. Federal Reserve, foreign governments, central banks, or reserve systems, directly accessible or verified by these entities.

The proposed Utah CBDC bill seeks to clarify that “a central bank digital currency is not specie legal tender and is not legal tender in the state.” This would effectively exclude CBDC from the state’s definition of money under the Utah Specie Legal Tender Act and the state’s UCC.

South Carolina State Senator Shane Martin introduced Senate Bill 861 on Nov. 30, 2023. Similar to Tennessee, the bill aims to amend the state’s UCC by specifying that the term “money” does not include any central bank digital currency.

In South Dakota, the Department of Labor and Regulation requested the introduction of Senate Bill 58 on Jan. 9. The proposed legislation adds that money “does not include any central bank digital currency” to its definition in the state’s UCC.

Comparable legislation has already been enacted in Florida, where Governor Ron DeSantis signed a bill limiting the state’s use of CBDCs. The law also prohibits the use of CBDCs issued by foreign governments and encourages other states to implement similar restrictions through their commercial codes.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.