The 25 U.S. States Where Central Bank Digital Currency (CBDCs) Bills Have Been Introduced

With the recent collapse of Silicon Valley Bank and the potential breakdown of U.S. regional banks, central bank (CBs) digital currencies—otherwise known as CDBCs—are becoming a hot topic. Many fear, rightly or wrongly, that CBs are promulgating policies that are detrimental to the current U.S. dollar fiat system, potentially to user-in the new monetary paradigm.

While determining intentionality is beyond the scope of this article, it is undeniable that states throughout the union are working with the central bank seeking to develop CBDC based systems.

Below, a list of current states (25) that have introduced bills that will facilitate the implementation of CBDCs.

Jurisdiction	Year	Bill No.	Status	Sponsor
Arizona	2023	HB 2770	introduced	Wilmeth
Arkansas	2023	HB 1588	introduced	Dismang
California	2023	SB 95	introduced
Colorado	2023	SB 90	introduced	Gardner
Dist. of Columbia	2023	25-0005	introduced	Mendelson
Hawaii	2023	HB 525	introduced	Nakashima
Indiana	2023	SB 468	introduced	Garten
Kentucky	2023	SB 64	introduced	Westerfield
Maine	2023	LD 91	introduced	Moriarty
Massachusetts	2023	HD 3379	introduced	Piesch
Missouri	2023	HD 1165	introduced	Hicks
Montana	2023	SB 370	introduced	Fitzpatrick
Nebraska	2023	LB 94	introduced	Slama
Nevada	2023	AB 231	introduced	Backus
New Hamshire	2023	HB 584	introduced	Ammon
New Mexico	2023	HB 90	introduced	Niebert
North Dakota	2023	HB 1082	introduced	Judiciary
Oklahoma	2023	HB 2776	introduced	McCall
Rhode Island	2023	HB 5543	introduced	Kennedy
South Dakota	2023	HB 1193	introduced	Stevens
Tennessee	2023	SB 479/HB 640	introduced	Stevens/Bricken
Texas	2023	SB 2075	introduced	Paxton
Washington	2023	SB 5077	introduced	Petersen
West Virginia	2023	HB 3212/SB 549	introduced	Storch/Woodrum

At its core, CBDC are a digital form of central bank money that can be used as a medium of exchange, unit of account, and store of value. It is issued and backed by the central bank, and its value is determined by the monetary policy of the central bank.

CBDCs can be issued in two forms: retail and wholesale. Retail CBDCs are designed for use by the general public, whereas wholesale CBDC are designed for use by financial institutions.

There are different types of CBDCs: account-based and token-based. Account-based are linked to an individual’s bank account, and transactions are recorded in a centralized ledger maintained by the central bank. While token-based are based on distributed ledger technology (DLT), and transactions are recorded on a decentralized ledger.

The benefits include faster and cheaper transactions, enhanced financial inclusion, and reduced financial intermediation. CBDCs can also help central banks to implement monetary policy more effectively.

However, there are also challenges associated with the implementation of CBDCs, such as the potential impact on financial stability, privacy concerns, and the risk of cyber attacks.

As such, the design and implementation needs to be carefully considered to ensure that they do not undermine the existing financial system.

Analyst Concerns About CBDCs

Additionally, some analysts are concerned that by doing away with cash altogether and making currency completely digit, central authorities will have undue power to ‘turn off’ people bank accounts. This could be done for political reasons—such as criticizing the government—or through ideological reasons, such as limiting consumers purchases for travel or red meat (limiting carbon).

As well, there is concern the governing power structure could simply take consumer funds for things such as back taxes and fees without due representation. On an overarching level, the root concern is that money will be viewed as the central bank asset which consumers are ‘privileged’ to use, rather that money (savings) being the aggregate of one’s individual earned wealth.

Whether these concerns are valid or not remains to be seen. But the march to pursue CBDCs by central banks across the world is relentless. Given the immense power it gives them to influence, direct and corral consumer spending, central banks are likely to continue such programs irrespective of the lack of broad public support.