The legislation known as House Bill 1193 has been rejected by the Governor of South Dakota, Kristi Noem. The measure modifies the definition of money so that cryptos like Bitcoin are no longer considered money and contain support for digital currencies issued by central banks (CBDC).
Noem stated his opposition to the bill in a tweet sent out on March 10. He stated that the bill “invites the possibility” to the risk that the national govt could adopt a CBDC.”
She went on to say that South Dakota would always be a staunch advocate for economic freedom.
I VETOED HB 1193. This bill adopts a definition of ‘money’ to specifically exclude crypto like Bitcoin. And it opens the door to the risk that the federal government could adopt a Central Bank Digital Currency.
South Dakota will always stand for Economic Freedom. pic.twitter.com/yqN2mPPaLj
— Kristi Noem (@KristiNoem) March 10, 2023
According to the Governor, this Law is Unfair to the People of the State
In a letter that she sent to Hugh Bartels, the Speaker of the House in South Dakota, Noem argued (1) that excluding crypto assets such as Bitcoin restricts the freedom of the people who live in the state. She went on to say that the bill will be detrimental to the state’s corporate community.
Adding CBDCs, the governor continued, “opens the door to a potential future expansion by the federal government.”
Noem also added,
“As of right now, there is no such thing as electronic money supported by the government that has been formed. It would be irresponsible to draft rules and regulations for something that does not yet exist.
https://twitter.com/govkristinoem/status/1634195202213543936
The proposed amendments to the Uniform Commercial Code are contained under House Bill 1193, which is 113 pages long (UCC). The Uniform Commercial Code (UCC) is an essential piece of business legislation that was created to standardize banking and financial procedures across the United States.
The term “money” would be defined as “an exchangeable instrument that is presently recognized or accepted by a domestic or foreign authority,” according to the amendment that is being suggested.
Under the terms of the proposed plan, crypto assets such as Bitcoin would not be recognized as a valid form of currency. At the same time, there is support for implementing a CBDC, which has been the subject of heated controversy.
The cryptocurrency community rallies around Veto
Stakeholders in the cryptocurrency industry have complimented Governor Noem for her forethought after she exercised her veto power. Charles Hoskinson, the founder of Cardano, expressed his gratitude for the governor’s acts in a meme that he put online.
https://t.co/KjikLAxecp pic.twitter.com/NA3svLCUSj
— Charles Hoskinson (@IOHK_Charles) March 10, 2023
In the meantime, conservative advocates also voiced their disagreement with the plan. Rep. Julie Auch has stated that the information in the bill makes it possible for the government to infringe on the financial privacy of its residents.
This information, which is included in the bill, not only establishes the means but also makes it possible for the state of South Dakota, the federal govt, or whoever is in charge of our finances to monitor your financial transactions.
They have the ability to cut off your access to your money if they decide that they do not want you to be able to use it within five miles of your house.
The South Dakota Bankers Association, on the other hand, stated that the state’s inability to adopt the updated UCC “endangers South Dakota’s capacity to stay competitive in commerce and fair market trade.”