South Dakota Republican Gov. Kristi Noem vetoed legislation that would have identified central bank digital currency as money with cryptocurrency being excluded.
“At this moment in time, such a government-backed electronic currency has not yet been created,” Noem explained to lawmakers. “More importantly, South Dakota should not open the door to a potential future overreach by the federal government.”
House Bill 1193 would have defined money as a “medium of exchange that is currently authorized or adopted by a domestic or foreign government.”
The bill was passed 49-17 in the South Dakota House of Representatives and 24-9 in the Senate before being vetoed by the governor.Another reason Noem gave for vetoing the legislation was that it “needlessly” cut back freedoms and put citizens at a “business disadvantage” by discouraging development in the nascent digital money sector.
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