• Governor Kristi Noem of South Dakota vetoed a bill that would have established a central bank digital currency (CBDC) as legitimate money.
• The bill was passed by both the House and Senate but Noem believed it discouraged further development and investments in the digital finance sector.
• The idea of a CBDC is scary because it brings into the picture third-party and/or federal control, thus going against everything crypto initially stands for.
Governor Noem Vetoes Central Bank Digital Currency Bill
Bill Defines Money As A „Medium Of Exchange“
Republican governor Kristi Noem of South Dakota has vetoed a bill that would have established a central bank digital currency (CBDC) as a legitimate form of money without recognizing assets like BTC and Ethereum. Known as House Bill 1193, the bill defined money as a “medium of exchange that is currently authorized or adopted by a domestic or foreign government.” Both divisions of the South Dakota government passed the bill with votes of 49 to 17 in the House and 24 to nine in the Senate.
Noem’s Viewpoint On The Issue
In her statement, Noem commented: At this moment in time, such a government-backed electronic currency has not yet been created. More importantly, South Dakota should not open the door to a potential future overreach by the federal government.“ She believes that this bill discouraged further development and investments in the digital finance sector.
What Does This Mean For Crypto?
The idea behind digital currencies was for users to have anonymity, autonomy, and independence through its use; they could make purchases without having middlemen or governments spying on them. However, if this CBDC were to exist then there would be centralized financial control over issuance which could lead to mainstream assets like bitcoin being destroyed due to competition from this new form of currency.
Conclusion
By vetoing this bill Kristi Noem may actually be giving cryptocurrencies more chance at life than if she had approved it as it would mean less third-party control over them. This could potentially be seen as an example of how crypto can increase its chances at becoming an accepted form of payment all around America rather than just within certain states who welcome it with open arms.
