Missouri introduces bill to ban CBDCs, improve gold reserves

The Missouri Senate has introduced a bill that would ban the use of central bank digital currencies as legal tender while encouraging the state to hold more of its reserves in gold and silver.

The legislation, known as SB 194, was introduced on December 1 and was sponsored by Senator Rick Brattin.

The bill aims to prevent public entities from accepting or participating in CBDC programs. It also requires the State Treasurer to hold at least 1% of state funds in physical gold and silver. Capital gains tax exemptions further encourage these metals.

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 cryptocurrencies like Bitcoin (BTC), which are decentralized and operate without a central authority, CBDCs are tightly controlled by governments.

Critics of CBDCs cite concerns about privacy, government surveillance and potential erosion of state sovereignty.

Missouri’s legal definition of “money”

Under SB 194, CBDCs are excluded from the legal definition of “money” in the Missouri Uniform Commercial Code, a set of laws that regulate commercial transactions. Public entities would also be prohibited from participating in federal pilot programs testing CBDC systems.

“The bill also changes the definition of ‘money’ to exclude central bank digital currency from its meaning for purposes of the Uniform Commercial Code,” the bill’s summary reads.

The bill also strengthens the role of gold and silver in Missouri’s fiscal framework. It declares these metals as legal tender, meaning they can be used to settle debts at market value. The legislation also exempts gains from the sale of gold and silver from state income taxes, consistent with existing exemptions from sales tax for these assets.

Supporters of SB 194 argue that it is a step toward protecting financial privacy and limiting centralized control over digital transactions. The requirement that a portion of government funds be stored 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 that prioritizes financial independence and alternatives to federally controlled digital systems.