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Committee hears presentation on bill to define central bank digital currency under UCC
Summary
Senate Bill 133 would add a definition of central bank digital currency (CBDC) to the Uniform Commercial Code and clarify that CBDC is not 'money' under certain UCC provisions; sponsor presented background and risks of CBDC.
Representative Howard Beatty presented Senate Bill 133 to the committee, explaining the bill would amend the Uniform Commercial Code to define a central bank digital currency (CBDC) and to modify UCC definitions of money and deposit account.
Nut graf: The sponsor framed the measure as preemptive statutory clarification to address potential legal and financial consequences if a CBDC were issued at the federal level. The presentation summarized possible CBDC models, argued the issuance could rewire the banking system by substituting Federal Reserve liabilities for bank deposits, and said the Fed had indicated it would not move forward without congressional authorization.
Beatty said CBDCs would be digital assets issued by a central bank and would remain as a liability on the central bank’s balance sheet; he warned proponents’ claimed benefits are largely theoretical and described risks such as deposit substitution that could reduce banks’ lending capacity. “CBDCs are digital assets that would be issued by a central bank,” Beatty said. He added the bill would define CBDC and clarify that a CBDC is not money in certain UCC contexts.
The transcript records the sponsor’s presentation but does not include further debate, public testimony or a committee vote on SB 133 during the recorded segment.
