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IPFS News Link • Central Banks/Banking

Several States Take Steps To Block A Central Bank Digital Currency

• https://www.zerohedge.com, by Mike Maharrey

Indiana was the first state to pass legislation relating to central bank digital currency. Enacted in 2023, the law explicitly excludes a CBDC from the definition of money under the state's Uniform Commercial Code (UCC). The law amends the definition of money to specify, "The term does not include a central bank digital currency that is currently adopted, or that may be adopted, by the United States government, a foreign government, a foreign reserve, or a foreign sanctioned central bank."

A similar law was enacted in Florida last year, and this year South Dakota, Tennessee, and Utah followed suit. A Nebraska bill repealing the capital gains tax on gold and silver also changed the definition of money in the state tax code to exclude CBDC.

This year, Indiana took a second step to hinder the implementation of a CBDC with the enactment of a measure prohibiting state agencies from accepting payments made with a central bank digital currency for any service, tax, license, permit, fee, information, or other amount due the governmental body. It also bars government agencies from requiring payments to be made with a central bank digital currency.

Additionally, under the law, state government bodies are prohibited from advocating for or supporting the testing, adoption, or implementation of a central bank digital currency by the United States government.

Alabama, North Dakota, and Georgia have passed similar laws. 

Impact

It remains unclear how changing the definition of money in the UCC and other steps taken at the state level would play out in practice against a CBDC if the federal government attempts to implement one.


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