The U.S. state of South Dakota is working on a bill to redefine the meaning of currency. Moreover, the state has taken a keen interest in classifying digital assets. The bill is titled “An Act to Amend Provisions of the Uniform Commercial Code.”
The bill states that cryptocurrencies like Bitcoin (BTC), created by people or organizations, would not be included in the definition of money. Moreover, the proposed amendment specifies that a potential medium of exchange would only be considered money if it has been “authorized or adopted” by a government.
The bill stated,
“The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.”
Furthermore, the bill further states,
“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 before the medium of exchange was authorized or adopted by the government.”
While some U.S. states have been open to the cryptocurrency industry, South Dakota seems to be unsure about the same. However, the bill is yet to be debated and is far from being passed. How things move from here, is yet to be seen.
CBDCs to be the only accepted cryptocurrency?
Some are of the opinion that the development could lead to the creation of a CBDC in the United States. Dennis Porter, the founder of Satoshi Fund, commented on the bill, saying that if it passes, it will pave the way for the creation of a CBDC (central bank digital currency). Moreover, according to Porter, the measure pushes for the creation of pro-CBDC states in the United States.
Additionally, Andy Roth warned that the measure is establishing a precedent for prohibiting the use of Bitcoin in commerce. Roth is the president of the State Freedom Caucus Network
South Dakota’s move is one of the numerous attempts being made as politicians debate how to regulate the cryptocurrency sector. Furthermore, according to some, CBDCs have been introduced in an effort to limit the power of private digital assets as part of providing a regulatory vision.
Meanwhile, Congressman Tom Emmer sponsored a new bill to prevent the Federal Reserve from issuing a CBDC. The act, he claimed, is intended to protect people’s financial privacy.