South Dakota governor vetoes bill supporting CBDC over crypto
South Dakota Governor Kristi Noem has vetoed House Bill 1193. The bill changes the definition of money to exclude cryptocurrencies such as Bitcoin and includes support for a central bank digital currency (CBDC).
In a March 10 tweet, Noem argued that the bill “opens the door to the risk that the federal government could adopt a digital central bank currency.”
She added that South Dakota will always stand for economic freedom.
Governor says Bill puts citizens at a disadvantage
In a letter to South Dakota House Speaker Hugh Bartels, Noem wrote that the exclusion of crypto-assets such as Bitcoin limits the freedom of the state’s citizens. She added that the bill put businesses in the state at a disadvantage.
The governor went on to say that including CBDCs “opens the door to a potential future handover from the federal government.”
Noem also added,
“At this time, no such government-backed electronic currency has been created. It would be irresponsible to create regulations governing something that does not yet exist.”
House Bill 1193 is a 113-page bill that updates the Uniform Commercial Code (UCC). The UCC is a core commercial law that ensures uniformity in banking and monetary practices in the United States
The proposed amendment defines money as “a medium of exchange currently authorized or adopted by a domestic or foreign government.”
Crypto-assets such as Bitcoin would not be an accepted form of money under the new proposal. At the same time, the highly debated implementation of a CBDC is supported.
Veto draws support from the crypto community
Governor Noem’s veto has been withdrawn praise from crypto stakeholders who praised her foresight. Cardano founder Charles Hoskinson posted one meme showing his appreciation for the Governor’s actions.
Meanwhile, the bill also drew opposition from conservative advocates. Representative Julie Auch said the information in the bill allows the government to invade citizens’ financial privacy.
“This information in this bill sets aside funds and allows the state of South Dakota, the federal government, or whoever is in charge of our money to track your money. If they don’t want you to have access to your money five miles from your home, they can close your money.”
However, the South Dakota Bankers Association said the failure to adopt the updated UCC “jeopardizes South Dakota’s ability to remain competitive in commerce and fair market dealing.”
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