Purpose of the Bill

The primary aim of this bill is to update the definitions related to money within Minnesota's Uniform Commercial Code (UCC). This includes the introduction of definitions for central bank digital currency (CBDC) and revisions to the definition of "money."

Main Provisions

• Definition of Central Bank Digital Currency (CBDC): The bill defines CBDC as an electronic currency, medium of exchange, or monetary unit of account issued by the United States Federal Reserve or similar authorities, including foreign governments and central banks. This currency is directly available to consumers and is processed or validated by the issuing entity.

• Revised Definition of Money: The definition of "money" has been updated. It refers to a medium of exchange currently authorized or adopted by a government, but explicitly excludes electronic records that existed as a medium of exchange before being authorized by a government, and CBDCs.

Significant Changes to Existing Law

• The inclusion of CBDC into the statutory language clarifies its position within the UCC framework.
• Adjusts the definition of "money" to recognize digital currencies and exclude them, like CBDCs, from traditional categories without completely disregarding their legitimacy.

Relevant Terms

central bank digital currency, CBDC, electronic currency, electronic medium of exchange, electronic monetary unit, Uniform Commercial Code, UCC, money, Federal Reserve, digital currency.