• 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.
• The bill was known as House Bill 1193 and was passed by both divisions of the South Dakota government.
• Noem believed that the bill discouraged further development and investments in the digital finance sector.
Governor Kristi Noem Vetoes Central Bank Digital Currency Bill
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. In her statement, she 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.
Overview of House Bill 1193
The vetoed bill is known as House Bill 1193 which defined money as “a medium of exchange that is currently authorized or adopted by a domestic or foreign government”. It was passed with votes of 49 to 17 in the House, while the Senate also approved it with a vote of 24 to nine.
Noem’s Reasoning Behind Vetoing The Bill
Despite gaining support from both branches, Governor Noem chose to push it away believing that the bill discouraged further development and investments in the digital finance sector. She believes that if implemented, this could lead to third-party or federal control on crypto transactions and its users’ anonymity, autonomy and independence would be compromised because issuance would occur through centralized financial entities only.
The Impact Of This Veto On Crypto
In many ways, it can be argued that Noem’s veto gives crypto an increased chance at life not just in South Dakota but also throughout the country due to its ability to protect user privacy and autonomy from third parties or federal authorities.
Despite initial appearances, Governor Kristi Noems‘ veto on House Bill 1193 is actually beneficial for cryptocurrencies as it protects their users‘ privacy while encouraging further investment into digital finance sectors without any interference from external sources like governments or middlemen.