- The state of South Dakota is attempting to redefine what constitutes money, focusing particularly on classifying cryptocurrencies.
- Reportedly, the move can be interpreted as a jab at Bitcoin.
The state of South Dakota is attempting to redefine what constitutes money, with a particular focus on classifying cryptocurrencies.
Bitcoin under fire
According to the bill, titled ‘An Act to Amend Provisions of the Uniform Commercial Code,’ digital currencies such as Bitcoin [BTC] would be excluded from the definition of money because they are created by individuals or organizations. Only a medium of exchange authorized or recognized by a government came under the definition of money.
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
According to the bill:
“The term does not include an electronic record that is a medium of exchange recorded and transferable in a system that existed and operated for the medium of exchange prior to the government authorizing or adopting the medium of exchange.”
Andy Roth, President of the State Freedom Caucus Network, commented on Twitter that the move “must be stopped” before it reached other U.S states.
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
The law would ensure that only governments can create money, which would appear to exclude all digital assets. The legislation mentions that no medium of exchange is money unless the government approved or adopted the medium of exchange.
Crypto regulation remains a matter of contention
Porter contended that the worst part of the development is that this policy would be implemented in 21 different states across the United States. There appears to be a goal of assembling a ring of pro-CBDC states that also exclude digital assets like Bitcoin from the definition of money.
However, it is worth noting that Bitcoin was gaining support in several U.S. states. This support came primarily due to the Satoshi Act Fund. Texas, New Hampshire, and Montana are just a few U.S. states that have passed Bitcoin-friendly legislation.
