States Move to Legislate Against Central Bank Digital Currencies

Table of Contents

• Key Takeaways
• Proposed Legislation
• Debate Over CBDCs vs Cryptocurrencies
• Notable Criticisms of CBDCs
• Wider Debate on Role of Digital Currencies

Key Takeaways

Lawmakers in four U.S. states have proposed legislation to exclude Central Bank Digital Currencies (CBDCs) from being recognized as money.

Proposed Legislation

The bills have been introduced in South Carolina, South Dakota, Tennessee, and Utah. In Utah, Rep. Tyler Clancy introduced a bill on January 4 to block CBDCs as legal tender in the state. The Utah bill specifies that CBDC is not “specie legal tender” within the state.

On January 9, a bill was introduced in South Dakota stating that CBDCs are not considered money. In Tennessee, a bill was filed on January 12 to similarly exclude CBDCs from the state’s definition of money.

Debate Over CBDCs vs Cryptocurrencies

There is a debate surrounding the comparison between CBDCs and private cryptocurrencies like Bitcoin, with some preferring the decentralized nature of cryptocurrencies to the potential government control associated with CBDCs.

Notable Criticisms of CBDCs

Notable criticisms of CBDCs have come from public figures such as JoeRogan and PostMalone , who have expressed concerns about government overreach. Florida Governor Ron DeSantis signed a law to prevent CBDC usage in Florida to safeguard against “government overreach and woke corporate monitoring.”

In Argentina, pro-Bitcoin President Javier Milei opposes the introduction of a CBDC by Economy Minister Sergio Massa.

Wider Debate on Role of Digital Currencies

The actions are part of a wider debate on the role and definition of digital currencies in the financial system. This news was reported by Cryptonews.

le.utah.gov

sdlegislature.gov

legiscan.com

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