Purpose of the Bill

This bill aims to update the definitions of "money" and introduce the concept of "central bank digital currency" (CBDC) within the Minnesota Statutes. It seeks to align the legal language with emerging financial technologies, particularly in the context of the Uniform Commercial Code (UCC).

Main Provisions

• Definition of Central Bank Digital Currency (CBDC): The bill defines CBDC as a digital form of currency issued directly by a national government, such as the United States Federal Reserve or similar foreign bodies. It clarifies that a CBDC can be a digital medium of exchange or a unit of account provided directly to consumers by the issuing body.

• Revision of the Term "Money": The definition of money is revised to explicitly exclude central bank digital currencies. Money is defined as a medium of exchange authorized by a domestic or foreign government, or through agreement between multiple countries. However, it does not include electronic forms of currency unless they have been authorized or adopted by a government.

Significant Changes to Existing Law

• Exclusion of CBDC from "Money": By excluding CBDCs from the definition of money, the bill highlights the distinct legal treatment of digital currencies from traditional forms of money. This change is crucial for transactions under the Uniform Commercial Code, impacting areas like commercial transactions and banking operations.

Relevant Terms

central bank digital currency, CBDC, money, Uniform Commercial Code, electronic currency, Federal Reserve, financial technology, legal definitions