HB408 Alabama 2023 Session

Summary

Primary Sponsor

Ben HarrisonRepresentative

Republican

Session

Regular Session 2023

Title

Relating to the Uniform Commercial Code; to amend Section 7-1-201, to provide a definition for "central bank digital currency;" and to specify that the definition of "money" does not include central bank digital currency.

Summary

HB408 would define central bank digital currency and exclude it from the UCC's definition of money, clarifying that CBDC is not money under Alabama law.

What This Bill Does

It adds a formal definition of central bank digital currency (CBDC) to the Uniform Commercial Code. It also amends the UCC to say that 'money' does not include CBDC. As a result, CBDCs would not be treated as money in UCC rules, which could affect how CBDC payments and related obligations are handled in transactions and remedies governed by the UCC.

Who It Affects

• Banks, lenders, and other financial institutions that deal with UCC-based transactions, because CBDC would not be treated as money under the code.
• Consumers and businesses using or considering CBDCs, because CBDCs would not be treated as money in UCC contexts.

Key Provisions

• Defines 'Central bank digital currency' as a digital currency/medium of exchange/monetary unit of account issued by the Federal Reserve System, a federal agency, a foreign government, a foreign central bank, or a foreign reserve system that is made directly available to a consumer or processed/validated directly by those entities.
• Amends Section 7-1-201 to establish the CBDC definition and to specify that the term 'Money' does not include central bank digital currency.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Uniform Commercial Code, provided that the term "money" does not include a central bank digital currency