• South Dakota governor Kristi Noem has vetoed legislation that would have excluded bitcoin and other cryptocurrencies from the definition of money.
• The bill would have allowed central bank digital currencies (CBDCs) to be classified as money, while excluding all other digital assets.
• Critics argued the bill was part of a larger plan to assemble a coalition of pro-CBDC states that outlaw other digital currencies like bitcoin.
South Dakota Governor Vetoes Bill Excluding Cryptos From Definition of Money
South Dakota governor Kristi Noem has formally rejected legislation that would have excluded bitcoin (BTC) and other cryptocurrencies from the definition of money in the state. This bill, known as House Bill 1193, was intended to amend provisions of South Dakota’s Uniform Commercial Code to exclude digital assets from being defined as „money“ in the state.
Bill Excluded Crypto But Classified CBDCs As Money
The 117-page bill introduced by Republican Mike Stevens in the state’s House of Representatives defines money as a possible medium of exchange only if it is „authorized or adopted“ by a government. This means that bitcoin (BTC) and other privately created digital currencies are not considered money, but government-controlled CBDCs such as the Chinese Digital Yuan are.
Gov. Noem Explains Her Veto
Explaining why she vetoed the bill, gov. Noem said that explicitly excluding crypto as money would make it difficult for South Dakota residents to use their crypto holdings and put them at a disadvantage when trading with people in other states. Gov. Noem also stated that the definition of money in HB 1193 could create a loophole for the federal government to adopt central bank digital currencies (CBDCs) and make them the only viable forms of digital money.
Critics Believe Bill Is Part Of A Larger Plan
Critics believed this bill would legalize CBDCs while outlawing all other digital assets and suspected it was part of a wider plan to assemble a coalition of pro-CBDC states that exclude digital assets like bitcoin from the definition of money. According to Dennis Porter, CEO and co-founder of Satoshi Action Fund, this same bill is being pushed in 21 different states across the U.S..
In conclusion, South Dakota governor Kristi Noem has officially vetoed legislation which sought to exclude cryptocurrency from being defined as „money“ under her state’s law while allowing government-backed CBDCs such as China’s Digital Yuan to be classified as such instead . Although supporters claimed that this move was necessary for protecting local businesses from fraudsters using cryptocurrencies for malicious activities, critics voiced suspicion about its potential implications on economic freedom within America – believing it may be part of an emerging trend towards nationwide recognition for centralized CBDC systems over decentralized networks like Bitcoin .