Missouri has taken a bold step in the realm of digital currency by introducing a bill to ban central bank digital currencies (CBDCs) as legal tender and promote the use of gold and silver reserves. The bill, known as SB 194, was filed on December 1 and is sponsored by Senator Rick Brattin. It aims to prevent public entities from accepting or participating in CBDC programs, while also mandating that the State Treasurer hold at least 1% of state funds in physical gold and silver.
CBDCs are digital currencies issued by central banks, such as the Federal Reserve, and are designed to function as a digital version of a country’s currency. Unlike decentralized cryptocurrencies like Bitcoin, CBDCs are tightly controlled by governments, raising concerns among critics about privacy, government surveillance, and the potential erosion of state sovereignty.
Under SB 194, CBDCs are excluded from the legal definition of “money” in Missouri’s Uniform Commercial Code, which governs commercial transactions. Public entities would also be prohibited from participating in federal pilot programs testing CBDC systems. The bill also declares gold and silver as legal tender, allowing them to be used to settle debts at their market value. Gains from the sale of these metals would be exempt from state income taxes, aligning with existing exemptions on sales tax for these assets.
Supporters of SB 194 argue that it is a crucial step towards preserving financial privacy and limiting centralized control over digital transactions. By requiring a portion of state funds to be held in gold and silver, the bill aims 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.
The introduction of this bill reflects a growing trend among states to explore alternative forms of currency and financial independence. By prioritizing gold and silver reserves over CBDCs, Missouri is sending a clear message about its commitment to financial sovereignty and privacy in the digital age.