South Dakota Governor Vetoes Bill Supporting Crypto CBDC

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South Dakota Governor Kristi Noem vetoed House Bill 1193. The bill changes the definition of money to exclude cryptocurrencies like Bitcoin and includes support for digital currencies from a central bank (CBDC).

In a March 10 tweet, Noem claimed that the bill “opens the door to the risk of the feds adopting a central bank digital currency.”

She added that South Dakota will always stand for economic freedom.

I VETEATED HB 1193. This bill adopts a definition of money to specifically exclude cryptos like Bitcoin. And that opens the door to the risk of the federal government adopting a central bank digital currency.

South Dakota will always stand for economic freedom. pic.twitter.com/yqN2mPPaLj

— Kristi Noem (@KristiNoem) March 10, 2023 Governor Says Bill Disadvantages Citizens

In a letter to South Dakota House Speaker Hugh Bartels, Noem wrote that excluding crypto assets like Bitcoin limits the freedom of citizens in the state. She added that the bill puts state-owned enterprises at a disadvantage.

The governor further stated that the inclusion of CBDCs “opens the door for possible future overreach by the federal government.”

Noem also added,

“At the moment, such a government-backed e-money has not been created. It would be unwise to create regulations governing something that does not yet exist.

I returned HB 1193 with my VETO.

The bill adopts a definition of money to specifically exclude cryptocurrencies. But these revisions include central bank digital currencies as currency.

These developments concern me for several reasons, which can be found in this letter: pic.twitter.com/3eqzdI80if

— Governor Kristi Noem (@govkristinoem) March 10, 2023

House Bill 1193 is a 113-page bill that updates the Uniform Commercial Code (UCC). The UCC is a basic commercial law that ensures uniform banking and monetary practices in the United States.

The proposed amendment defines currency as “a medium of exchange that is currently authorized or adopted by a domestic or foreign government.”

Crypto assets like Bitcoin would not be an accepted form of currency under the new proposal. At the same time, the highly controversial implementation of a CBDC is supported.

Veto attracts support from the Crypto community

Governor Noem’s veto drew praise from crypto players who praised his foresight. Cardano founder Charles Hoskinson posted a meme showing his appreciation for the governor’s actions.

Meanwhile, the bill has also drawn opposition from conservative advocates. Representative Julie Auch said the information in the bill allows the government to invade the financial privacy of citizens.

“This information inside this bill defines the means and allows the State of South Dakota, the federal government or the people in charge of our money to follow your money. If they do not want you 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 trade.”

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Disclaimer

BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

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