Missouri introduces bill to ban CBDCs, improve gold reserves

by

As a seasoned researcher with a background in both economics and technology, I find Missouri’s SB 194 bill intriguing. Having closely observed the evolution of digital currencies and central banking systems over the past decade, it is refreshing to see states taking an active role in shaping this emerging landscape.

In simpler terms, the Missouri Senate is proposing a law that would forbid central bank digital currencies from being recognized as valid money, instead advocating for the state to increase its savings in gold and silver.

Known as SB 194, the legislation was filed on December 1 and is sponsored by Senator Rick Brattin.

The proposed legislation seeks to prevent government agencies from engaging in Central Bank Digital Currency (CBDC) initiatives, while requiring the State Treasurer to keep at least 1% of the state’s funds in the form of physical gold and silver. Additionally, this bill offers a tax break on capital gains for these precious metals, encouraging their investment.

Central Bank Digital Currencies, or CBDCs, represent the digital form of a nation’s traditional currency, issued by institutions such as the Federal Reserve. Unlike cryptocurrencies like Bitcoin (BTC), which run independently and without central oversight, CBDCs are managed closely by governmental bodies.

Opponents of Central Bank Digital Currencies express worries about issues like personal privacy infringements, increased government monitoring, and possible reductions in national autonomy.

Missouri’s legal definition of “money”

According to SB 194, Central Bank Digital Currencies (CBDCs) are not considered as “money” under the Missouri Uniform Commercial Code, a collection of laws that regulate business transactions. Furthermore, this bill prevents public entities from joining federal trials designed to test the functionality of CBDC systems.

The action alters the term ‘money’ for the context of the Uniform Commercial Code so that central bank digital currencies are not considered part of its definition, as stated in the bill’s explanation.

As an analyst, I’d rephrase it like this: In my analysis, this bill expands the use of gold and silver within Missouri’s monetary system. It recognizes these metals as valid currency, enabling them to be utilized to repay debts based on their current market value. Moreover, this legislation exempts profits from the sale of gold and silver from state income taxes, mirroring existing exemptions for sales tax on these assets.

Advocates for SB 194 believe it’s a move to safeguard financial confidentiality while reducing the concentration of power in digital transactions. The bill proposes that a certain amount of state funds be kept as gold and silver, with the aim of enhancing financial resilience by leveraging assets known for their historical stability.

Should SB 194 be enacted, Missouri might establish itself as a state emphasizing self-reliance in finances and exploring options outside of federally managed digital systems.

Read More

2024-12-04 18:01