Recently, Georgia enacted HB 1053 (the “Act”) which would prohibit government agencies from engaging with central bank digital currencies (CBDCs). Specifically, the legislation would prevent state government agencies from accepting CBDCs as a form of payment or participating in any pilot programs involving CBDCs. Georgia representatives banned CBDCs within government operations, citing potential “privacy and security concerns” for individuals and businesses, calling them an “unacceptable extension” of federal authority, and expressed concern that that a CBDC could disrupt the existing banking system and “undercut” the community bank; The role of credit unions in the financial system. The ban will be effective from July 1.

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