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Financial Services Law Insights and Observations

Georgia bans CBDCs for government use

State Issues State Legislation Georgia CBDC Privacy Digital Currency Central Bank Digital Currency

State Issues

Recently, Georgia enacted HB 1053 (the “Act”) which will prohibit government agencies from engaging with central bank digital currencies (CBDCs). Specifically, the legislation will prevent state government agencies from accepting CBDCs as a form of payment or from participating in any pilot programs involving CBDCs. Georgia representatives banned CBDCs within government operations citing potential “privacy and security concerns” for individuals and businesses, called them an “unacceptable expansion” of federal authority, and were concerned that a CBDC could disrupt the current banking systems and “diminish” community bank and credit unions’ roles in the financial system. The ban will go into effect on July 1.