Central Bank Digital Currency; prohibit governmental entities from using.
By amending Section 75-1-201 of the Mississippi Code, HB303 clarifies that 'money' does not include a central bank digital currency. This change has broader implications on how digital currencies are categorized under state law and emphasizes traditional forms of currency. The prohibition may impact the acceptance of digital payment processes within governmental functions and could lead to slower adaptation to emerging technologies in the financial sector.
House Bill 303 aims to prohibit all governmental entities in the State of Mississippi from utilizing central bank digital currencies (CBDCs) for transactions related to payments for services and other operational functions. Under this bill, a 'governmental entity' encompasses any department, agency, institution, or subdivision of the state. The bill specifically defines 'central bank digital currency' as any digital medium of exchange issued by government agencies, including the Federal Reserve and foreign entities, made available directly to consumers.
Notably, the introduction of this bill may spark debate regarding the role of governmental entities in adopting new financial technologies. Proponents of the bill argue it safeguards against potential overreach by central authorities that might diminish the value and privacy of traditional currencies. Detractors, however, may raise concerns that this move stifles financial innovation and limits the state’s ability to modernize its payment systems and adapt to global financial trends, particularly as digital currencies gain traction globally.