Four US states, namely Utah, South Carolina, South Dakota and Tennessee, have proposed bills to exclude central bank digital currency (CBDC) from being a valid form of payment or exchange.
In November 2023, South Carolina Senator Shane Martin introduced a bill defining money as a legally accepted medium of exchange, but explicitly excluding CBDC from that definition.
On January 4, 2024, a bill was introduced in the Utah House of Representatives that characterizes CBDC as a digital representation of money issued by government entities. However, the bill specifies that "central bank digital currency is not recognized as legal tender, particularly within the state."
Similarly, on January 12, Senator Frank Naisley introduced a bill in Tennessee that states that money is an authorized medium of exchange, but explicitly excludes any form of central bank digital currency from that definition.
In addition, South Dakota also does not recognize central bank digital currency as a valid form of money.
It is worth noting that in December 2023, #Ripple Labs announced that around 130 countries around the world are actively developing projects related to central bank digital currency (CBDC).
The bills introduced by these nations reflect their stance on #CBDC and highlight their reservations about recognizing it as a legitimate form of money, and as global interest in CBDC projects continues to grow, we will continue to monitor the evolving regulatory framework related to #digital currencies.
