South Dakota Governor Kristi Noem vetoed a bill that would have prohibited the use of cryptocurrencies, including bitcoin, as money. The bill, also paves the way for, disguised as an update to the guidelines of the Universal Commercial Code (UCC). a Central Bank Digital Currency (CBDC). Emphasizing that the bill is clearly a “threat to our freedoms,” the governor urged the 20 other states that are considering similar legislation to “stop this bill from being passed.”
South Dakota Governor vetoes bill that would “prohibit” the use of Bitcoin and other cryptocurrencies as money
The U.S. state government of South Dakota announced Friday that Governor Kristi Noem vetoed House Bill 1193, which would “infringe on the freedom of digital currency.” In his veto letter, the governor explained.
HB 1193 adopts a definition of “money” that specifically excludes cryptocurrencies like bitcoin and other digital assets. At the same time, these UCC revisions include central bank digital currency (CBDC) as money.
Noting that the bill is over 110 pages, the governor explained in an interview with Fox News on Friday that it was “marketed as an update to the UCC (Uniform Commercial Code) guidelines and was supported by all financial institutions and banks.”
She elaborated.” As we began to read through it, we saw a section in the bill that would change the definition of currency, which we thought would be a good thing, because it would allow for the definition of currency to be changed. And essentially what it did was pave the way for a government-led CBDC, and it also prohibited any other form of cryptocurrency, bitcoin, or digital currency from existing.”
The Governor stressed that for her it was “very clearly a threat to our freedoms” and noted that South Dakota was the first state to “really look at this bill and get to the truth of what is in it.”
20 other states are trying to consider similar legislation
Governor Noem elaborated further.
“Twenty other states will be using similar language. I think it is intended to pave the way for the federal government to control the currency and control the people. This is something that everyone should be alarmed about, and it is being sold as an update to the UCC guidelines.”
The governor also warned that “if the government’s CBDC becomes the only legal digital currency,” the government “will control how that money is spent, and that will take away all your freedoms.” She tweeted on Saturday.
The same UCC language is before us in more than 20 other states. These bills would change the definition of “money,” make it harder to use cryptocurrencies, and make it easier for the federal government to impose CBDC. These states must block passage of this legislation.
In his veto letter, the Governor expressed several concerns. First, “Explicitly excluding cryptocurrencies as money would make it more difficult for people to use cryptocurrencies. By unnecessarily restricting this freedom, HB 1193 would put South Dakota citizens at a business disadvantage.”
In addition, Noem said, “By defining ‘money’ in this proposed manner, HB 1193 opens the door to the risk that the federal government will more easily adopt CBDC and then it may become the only viable digital currency.”
The Governor concluded by stating that “at this time, no such government-guaranteed electronic currency has been created,” stressing that.
It would be imprudent to create regulations governing something that does not yet exist. More importantly, South Dakota should not open its doors to the possibility of future federal overreach.
What do you think about the updated UCC guidelines that, as Governor Noem stated, prohibit the use of cryptocurrencies as money and pave the way for a government-led central bank digital currency (CBDC)? Please let us know in the comments section below.
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