South Dakota has recently introduced a new bill that modifies the definition of money. Specifically, it excludes existing digital assets such as Bitcoin, while embracing central bank digital currencies (CBDCs) as part of the definition.
BREAKING: The state of South Dakota is attempting to pass a bill that would exclude #Bitcoin from the definition of “Money” while giving a safe path for CBDCs. pic.twitter.com/V6FCNM6Fm5
— Dennis Porter (@Dennis_Porter_) March 2, 2023
All about The Bill (HB 1193)
HB 1193, “An Act to Amend Provisions of the Uniform Commercial Code”, seeks to revise the set of laws that regulate commercial transactions in the state. The proposed amendment, presented to the state House of Representatives by Republican Mike Stevens, seeks to clarify that currency and money can only be used as a medium of exchange if it is authorized or adopted by a government. This measure, which runs 117 pages in length, aims to set a formal definition of what constitutes money.
The bill also outlined that money does not encompass an electronic record considered to be a medium of exchange, in systems that predate any authorization or adoption of the medium of exchange by the government. This is referring to all cryptocurrencies. The crypto community has expressed grave concern with the proposed bill, which designates CBDCs as a form of money but excludes digital currencies. If enacted, Amazon and all other retailers would be precluded from accepting cryptocurrencies, such as Bitcoin, as payment.
Governor Urged to Veto Bill as Club for Growth Raises Concerns
David McIntosh, President of Club for Growth, has even forwarded a letter to South Dakota Governor Kristi Noem, for vetoing this bill which doesn’t include Bitcoin or any other virtual assets within the definition of money.
In his letter, McIntosh noted that HB 1193 is a threat to free-market economics, American innovation, individual rights, and U.S. national security, and he urged its veto. Such action, he said, is vital to protect the fundamental principles of the American economy and our standing in the world. He further noted that Bitcoin and other digital assets are among the most transformative technologies since the advent of the internet, with the potential to significantly expand the global economy.