States exclude CBDCs from recognition as money

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A bill filed in the South Carolina Senate would expressly exclude a central bank digital currency (CBDC) from the definition of money in South Carolina, creating potentially significant roadblocks to its use as such in the state.

Sen. Shane Martin filed Senate Bill 861 (S861) on Nov. 30. The legislation defines central bank digital currency as a “digital medium of exchange, or digital monetary unit of account issued by the United States Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system that is made directly available to a consumer by such entities and that is processed or validated directly by such entities.”

Under the South Carolina Uniform Commercial Code (UCC), “money” means “a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”

S861 would add “the term does not include a central bank digital currency” to that definition.

Similar legislation has already been signed as law in Indiana and Florida.
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More:

 
New Hampshire also considering a similar bill:
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Rep. James Summers and three cosponsors filed House Bill 1232 (HB1232). The legislation would prohibit any agency, department, or political subdivision of the state from accepting a payment using central bank digital currency. It would also prohibit them from participating in any test of central bank digital currency by any Federal Reserve branch.

The bill is similar to a law passed in Alabama in 2023.
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This will be interesting - and may be the catalyst.

The Constitution says it plainly. Article I Section X: Nothing but Gold and Silver shall be money.

What the out-of-control central bank is doing, is trampling the Constitution.

If no one within the Federal structure will hold the Fed to account, and will force this abomination on the People...time to Secede.
 
A lot of States and cities also enacted legislation against invading Iraq back in 2002. Fat lotta good that did.

All State laws against cbdc's will be declared invalid.
 
Like that's had any attention paid to it in the past 100 or so years.
Well...severity of the offense. Cost/benefit, if you like. You don't divorce your wife because she burned your toast.

Now if she put Locktite on your toast, and stood by to watch you choke out on it...you might decide it's time to call the divorce lawyer.

So has this been building. Now, it's not about legal doublespeak about how Federal Reserve Notes are not money, but currency. Now it's about how they're proposing, not money but ELECTRONIC SCRIP, with limited usage, with unequal treatments...basically, individual permissions given to everyone based on an algorithmic score.

That violates the Constitution in a dozen ways. THEY DO NOT CARE.

Time to exit the Union. Long past time, IMHO.
 
A bill filed in the Nebraska Legislature would take a small step toward limiting the impact of any potential future central bank digital currency (CBDC).

Sen. Robert Clements introduced Legislature Bill 872 (LB872) on Jan. 3. The legislation would prohibit a state agency, state official, county treasurer, county official, or political subdivision official from accepting a central bank digital currency as a method of cash payment of any tax, levy, excise, duty, custom, toll, interest, penalty, fine, license, fee, or assessment of whatever kind or nature.
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Utah joined the party:
A bill filed in the Utah House would expressly exclude a central bank digital currency (CBDC) from the state’s definition of money, creating potentially significant roadblocks to its use as such in Utah.

Rep. Tyler Clancy introduced House Bill 164 (HB164) on Jan. 4. The legislation defines central bank digital currency as “a digital currency, a digital medium of exchange, or a digital monetary unit of account issued by the United States Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system, that is made directly available to a consumer by such entities, or processed or validated directly by such entities.”

HB164 would specify that “a central bank digital currency is not specie legal tender and is not legal tender in the state,” effectively excluding CBDC from the state’s definition of money under the state’s Uniform Commercial Code (UCC),
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South Dakota in the house:
A bill filed in the South Dakota Senate would expressly exclude a central bank digital currency (CBDC) from the definition of money in the state, creating potentially significant roadblocks to its use as such in South Dakota.

At the request of the South Dakota Department of Labor and Regulation, the chair of the Committee on Commerce and Energy introduced Senate Bill 58 (SB58) on Jan. 9.
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More:

 
A bill filed in the Tennessee Senate would expressly exclude a central bank digital currency (CBDC) from the definition of money in the state, creating potentially significant roadblocks to its use as such in the state.

Sen. Frank Niceley introduced Senate Bill 1764 (SB1764) on Jan. 12.

Under the Tennessee Uniform Commercial Code (UCC), “money” means “a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”

SB1764 would add the term “does not include any central bank digital currency” to that definition.
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While this thread has been highlighting legislation from individual States, there is also some effort at the Federal level:

Sen. Lee Fights Central Bank Digital Currency​

March 24, 2023

WASHINGTON – Sen. Mike Lee (R-UT) reintroduced legislation to prevent the Federal Reserve from reshaping the U.S. financial sector and having the ability to monitor consumer transactions. The Fed, with encouragement from the Biden Administration, has begun to develop a central bank digital currency (CBDC), a digital asset, minted, issued, and controlled by them, that would alter the ability of financial institutions to function as lenders, while giving the federal government knowledge of every purchase that uses a CBDC. Financial institutions could no longer offer loans – or at the very least would be significantly restricted in doing so – since they would bear no risk for a deposit; they would function merely as wallets, holders of a CBDC – and as such, could not extend deposits to prospective borrowers in the form of loans. Lastly, the Federal Reserve would have knowledge of every transaction involving a CBDC; if it maintains the technology to create and operate a CBDC, it will know how it is used.

Of the bill, Sen. Lee said, “The United States doesn't need to create a Central Bank Digital Currency to know it is a bad idea. We've seen this play out in China with the digital Yuan. In early trials, China canceled its citizens' money after a set period, forcing Chinese citizens to spend their savings at the compulsion of the government. My bill protects Americans from a similar intrusion by prohibiting the Federal Reserve or any federal government agency from minting or issuing a CBDC, whether through a direct-to-consumer or intermediated model.”

Nicholas Anthony and Norbert Michel of the Cato Institute mentioned in a recent report, “The case against central bank digital currencies (CBDCs) grows stronger by the day … CBDCs put the future of financial privacy, freedom, and markets at risk, and these bills would provide much needed safeguards against the United States issuing a CBDC. Senator Lee’s bill would establish clear boundaries for not just the Federal Reserve (Fed), but also the Department of the Treasury (Treasury). Time and time again, Fed Chair Jerome Powell and former-Vice Chair Lael Brainard have skirted questions on the Fed’s authority to issue a CBDC. Likewise, the Treasury seems to have taken the lead: on pushing CBDCs forward under the Biden administration. Considering these developments, it’s clear that Senator Lee’s approach is indeed warranted.

“These bills would establish some much-needed checks on the federal government’s efforts to launch a CBDC. The potential consequences of a CBDC are simply too large to be left up to the discretion of unelected bureaucrats at the Fed or the Treasury. It’s a decision that should rest with Congress.”


CATO commentary:


S.967 (the ‘‘No Central Bank Digital Currency Act’’ or the ‘‘No CBDC Act’’):

 
Bills filed in the Oklahoma House and Senate would expressly exclude a central bank digital currency (CBDC) from the definition of money in the state, creating potentially significant roadblocks to its use as such in Oklahoma.

Sen. Nathan Dahm filed Senate Bill 1865 (SB1865). Rep. Clay Staires filed House Bill 3323 (HB3323).
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Update on the Utah bill:
Today, a Utah House committee unanimously passed a bill that would expressly exclude a central bank digital currency (CBDC) from the state’s definition of money, creating potentially significant roadblocks to its use as such in Utah.
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HB164 is now eligible for further debate and consideration in the full House.

 
A bill introduced in the Hawaii Senate would take steps to limit the impact of central bank digital currency (CBDC) in Hawaii, creating potentially significant roadblocks to its use in the state.

Rep. Lynn Decoite introduced Senate Bill 2676 (SB2676) on Jan. 19. The legislation would take several steps “to protect a person’s right to choose whether to participate in a digital currency system and to ensure that the people of the State are not coerced into adopting digital currencies against their will.”

In effect, it would create a favorable environment for people in Hawaii to opt out of using CBDC.

Under the proposed law, “Every person shall have the right to choose whether to participate in a digital currency system and shall retain the freedom to transact and store value using traditional fiat currency, physical cash, or any other legal means of payment.”

It would specifically bar the state from requiring the use of a CBDC.
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Update:

NASHVILLE, Tenn. (Feb. 5, 2024) – A bill filed in the Tennessee Senate would expressly exclude a central bank digital currency (CBDC) from the definition of money in the state, creating potentially significant roadblocks to its use as such in the state.

Sen. Bill Powers introduced Senate Bill 2219 (SB2219) on Jan. 30. Under the Tennessee Uniform Commercial Code (UCC), “money” means “a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”

SB2219 would add the term “does not include any central bank digital currency” to that definition.

 
So Tennessee has two distinct bills (SB2219 and SB1764) that say the same thing. The process of political sausage making escapes me.
 
South Dakota bills passed the House:
Yesterday, the South Dakota House passed two bills to reject a central bank digital currency (CBDC), removing it from the definition of money in the state and banning the state from accepting it as payment.

Rep. Mike Stevens and a bipartisan coalition of cosponsors introduced House Bill 1163 (HB1163) and House Bill 1161 (HB1161) on Jan. 25. HB1163 would expressly exclude a CBDC from the definition of money in South Dakota, and HB1161 would prohibit state agencies from accepting CBDC as a form of payment.
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HB1161 and HB1163 will move to the Senate for further consideration. Once they are assigned to a Senate committee, the must get a hearing and pass by a majority vote before moving forward in the legislative process.


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Arizona:
bill introduced in the Arizona Senate would expressly exclude central bank digital currency (CBDC) from the definition of legal money in the state, creating potentially significant roadblocks to its use as such in Arizona.

Sen. Jake Hoffman and five cosponsors introduced Senate Bill 1281 (SB1281) on Jan. 30. ...

More:

 
Update on the Utah bill:


Update:
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On Feb. 9, the Utah Senate passed HB164 by a 27-1 vote. The House previously approved the measure by a vote of 68-0. The bill now moves to Gov. Spencer Cox’s desk for his consideration. He will have 20 days from the date the legislature adjourns for the session to sign or veto HB164. If he takes no action, the bill will become law without his signature.
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ST. PAUL, Minn. (Feb. 16, 2024) – A bill filed in the Minnesota House would expressly exclude a central bank digital currency (CBDC) from the definition of money in the state, creating potentially significant roadblocks to its use as such in the state.

Rep. Elliot Engen introduced House Bill 3394 (HF3394) on Feb. 12. Under the Minnesota Uniform Commercial Code (UCC), “money” means “a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”

HF3394 would add the term “does not include any central bank digital currency” to that definition.

 

Republican Lawmakers Introduce Legislation to Ban a CBDC in the U.S. ... Again​


  • Republican senators have introduced legislation aimed at blocking a CBDC in the U.S.
  • The lawmakers say the "Biden administration salivates at the thought of infringing on our freedom and intruding on the privacy of citizens to surveil their personal spending habits ..."
  • Republicans have tried to introduce such legislation several times in the past.

Yet again, Republican lawmakers have introduced legislation to block efforts to introduce a central bank digital currency (CBDC) in the U.S. on concerns a digital dollar would impinge on personal privacy.

On Monday, U.S. Sen. Ted Cruz (R-Texas), joined by Sens. Bill Hagerty (R-Tenn.), Rick Scott (R-Fla.), Ted Budd (R-N.C.), and Mike Braun (R-Ind.), filed legislation titled "The CBDC Anti-Surveillance State Act."

More:

 
Sen Cruz has disappointed me on many issues in the past. I'm glad that he is supporting this though.
 
Yesterday, South Dakota Gov. Kristi Noem signed two bills into law to reject a central bank digital currency (CBDC), removing it from the definition of money in the state and banning the state from accepting it as payment.

Rep. Mike Stevens and a bipartisan coalition of cosponsors introduced House Bill 1163 (HB1163) and House Bill 1161 (HB1161). HB1163 expressly excludes a CBDC from the definition of money in South Dakota, and HB1161 prohibits state agencies from accepting CBDC as a form of payment.
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Nice!
 
Yesterday, Indiana Gov. Eric Holcomb signed a bill into law that takes additional steps to impede the practical impact of a central bank digital currency. The legislation expands a 2023 law that removed CBDC from the definition of money in the state.

Last year, Indiana became the first state to enact a law that removed a central bank digital currency (CBDC) from the definition of money in the state. On Jan. 9, Sen. Eric Koch introduced Senate Bill 180 (SB180) to expand on that law.

The new law prohibits 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.
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Nice!
 
On Wednesday, Gov. Spencer Cox signed a bill into law that expressly excludes a central bank digital currency (CBDC) from the state’s definition of legal tender and money, creating potentially significant roadblocks to its use as such in the state.

Rep. Tyler Clancy introduced House Bill 164 (HB164) on Jan. 4. Sen. Michael Kennedy sponsored the bill on the Senate side. The new law specifes that “a central bank digital currency is not specie legal tender and is not legal tender in the state,” effectively excluding CBDC from the state’s definition of money under the Utah Specie Legal Tender Act.

HB164 also changes the definition of money under the state’s Uniform Commercial Code (UCC) to specify that “Money does not include a central bank digital currency.”

On Feb. 9, the Senate passed HB164 by a 27-1 vote. The House previously approved the measure by a vote of 68-0. With the governor’s signature, the new law goes into effect on May 1, 2024.
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I like this trend.
 
PIERRE, S.D. (March 22, 2024) – A bill signed into law by South Dakota Gov. Kristi Noem to revise provisions regarding money transmission in the state would also take another step to reject a central bank digital currency (CBDC).

The Committee on Commerce and Energy introduced Senate Bill 58 (SB58). It specifically excludes CBDC from the definition of money as used in the chapter.

The House passed SB58 by a 51-18 vote and the Senate concurred with House amendments by a 31-3 margin. With Gov. Noem’s signature. the law will go into effect on July 1.

Noem recently signed two other bills in an effort to limit the impact of a CBDC. House Bill 1163 (HB1163) and House Bill 1161 (HB1161). HB1163 expressly excludes a CBDC from the definition of money in the state’s Uniform Commercial Code (UCC), and HB1161 prohibits state agencies from accepting CBDC as a form of payment.

 
NASHVILLE, Tenn. (March 25, 2024) – Today, the Tennessee Senate unanimously passed a bill that would expressly exclude a central bank digital currency (CBDC) from the definition of money in the state, creating potentially significant roadblocks to its use as such in Tennessee.

 

U.S. House Passes Bill Banning Federal Reserve From Issuing a CBDC​

The U.S. House of Representatives voted largely along party lines to prevent the Federal Reserve from issuing a central bank digital currency.

The CBDC Anti-Surveillance State Act, introduced by Majority Whip Tom Emmer (R-Minn.), seeks to block the U.S. central bank from continuing efforts toward the development of a digital dollar. Republicans expressed concerns that a U.S. CBDC could be used to control Americans.

Democrats said during debate before Thursday's vote that the concerns were overblown and a ban would block public sector innovation and research. Overall, 213 Republicans and three Democrats voted for the bill, while 192 Democrats voted against it.

More:

 
RALEIGH, N.C. (June 28, 2024) – On Wednesday, the North Carolina House gave final approval to a bill that would take a small step toward limiting the impact of any potential future central bank digital currency (CBDC) in the state, sending to the governor’s desk.

Rep. Harry Warren and a coalition of eight cosponsors introduced House Bill 690 (H690) on April 18. The legislation would prohibit any state governmental agency from accepting a payment using central bank digital currency. It would also bar all state governmental agencies from participating in any test of central bank digital currency.

 
ATLANTA, Ga. (July 5, 2024) – On Monday, a Georgia law went into effect that will take a small step toward limiting the impact of any potential future central bank digital currency (CBDC) in the state.

Rep. Carter Barrett and five cosponsors introduced House Bill 1053 (HB1053) on Jan. 26. The new law prohibits a state governmental agency from accepting a payment using central bank digital currency. It also bars all state governmental agencies from participating in any test of central bank digital currency.

The legislative findings in HB1053 state, “A CBDC would be an unacceptable expansion of federal authority by giving the federal government unprecedented control of the lives, freedoms, choices, and sovereignty of the people of Georgia.”

 
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