A bill has been introduced in South Dakota that aims to amend the Uniform Commercial Code (UCC) by limiting the definition of “money” to exclude cryptocurrencies, while still considering central bank digital currencies (CBDCs) as money.
The proposed definition of “money” would only include a medium of exchange that is currently authorized or adopted by a domestic or foreign government, while excluding an electronic record that is a medium of exchange recorded and transferable in a system that existed and operated for the medium of exchange before the government authorized or adopted it.
The bill was introduced by Republican Mike Stevens and has caused controversy among some, including the head of the conservative State Freedom Caucasus Network, Andy Roth.
This is a huge deal. The UCC is creating the framework for CBDCs to be accepted (and #bitcoin denied) via Amazon and all other retailers. All digital transactions.
This must be stopped. The good news is that we still have a chance to kill this in the 49 other states. https://t.co/lUhcjsN11D
— Andy Roth (@andyroth) March 2, 2023
This move contrasts with the recent “CBDC Anti-Surveillance State Act” introduced in the U.S. House of Representatives by pro-cryptocurrency Minnesota Republican Tom Emmer.
The UCC previously introduced the concept of “controllable electronic records” in amendments approved in July, which aimed to regulate digital assets at the state level, and treated cryptocurrencies and CBDCs separately. However, these changes also created “giant choice-of-law problems,” according to Juliette Moringiello, a member of the U.S. Uniform Law Commission and American Law Institute joint committee.
If passed, the South Dakota bill would go into effect on July 1, 2024. Although the United States currently does not have a CBDC, the Digital Dollar Project and other groups are researching the possibility of a “digital dollar.”
I personally don’t think this has a good chance of passing. The governor in South Dakota, Kristi Noem, proved herself to be very pro-freedom a couple years ago when many states were implementing mandates and lockdowns.
If you’re wondering why DECENTRALIZED currencies like Bitcoin are so important (to actually start using for transactions), then this is the article for you.
