HOUSE BILL NO. 5133

A bill to prohibit the use, offer, and acceptance of central bank digital currency as legal tender; to provide remedies; and to provide for the powers and duties of certain state and local governmental officers and entities.

the people of the state of michigan enact:

Sec. 1. This act may be cited as the "central bank digital currency prevention act".

Sec. 2. As used in this act:

(a) "Central bank digital currency" means a digital currency, a digital medium of exchange, or a digital monetary unit of account issued by the United States Federal Reserve System, a federal agency, a state agency, a foreign government, a foreign central bank, or a foreign reserve system, that is made directly available to a consumer and processed and validated by those entities.

(b) "Legal tender" means money that is recognized by law as a valid means of payment and settlement of debt.

Sec. 3. (1) A governmental entity shall not do any of the following:

(a) Accept central bank digital currency as legal tender in this state.

(b) Require central bank digital currency as legal tender for a service, tax, license, permit, fee, information, or other amount due to the governmental entity.

(2) A governmental entity shall not advocate for or support the testing, adoption, or implementation of a central bank digital currency by the United States government.

Sec. 4. (1) A person that suffers a loss as a result of a violation of this act may bring a civil action against the governmental entity that committed the violation to recover damages.

(2) In an action under this section, the court shall award a prevailing plaintiff 3 times the amount of the plaintiff's actual damages.