A little-discussed, but crucial, bill that would have facilitated the implementation of a central bank digital currency by the federal government was just rejected by South Dakota Governor Kristi Noem.
One of the largest challenges to American freedom that exists now is countered by the defeat of House Bill 1193.
Republican Blocks Bill
Noem heroically opposed her political party, which controls South Dakota’s legislature, by deciding to block the bill. Hopefully, very soon, legislators in other states will pay attention.
Similar bills are being proposed in more than 20 additional states. Numerous legislators, both Republicans and Democrats, have persisted in advancing the proposals while frequently professing to be averse to the creation of a digital dollar.
In addition to numerous other states, similar bills are currently being explored in Arkansas, Montana, New Hampshire, North Dakota, Tennessee, Texas, and California.
The endeavor to change certain sections of the Uniform Commercial Code (UCC) includes passing legislation like H.B. 1193 on a national level.
The UCC is state legislation that was adopted by all 50 states, not a federal regulation. It has been in existence for more than 100 years and continues to be essential to guaranteeing cross-state commerce runs smoothly.
The UCC needs to be revised from time to time, since the nature of trade is constantly evolving and that is precisely what proposals like this one seek to do.
Circle’s USD Coin ballooned to $55 billion because institutional investors trust it more than Tether. Then SVB collapsed holding billions of USDC’s reserves and breaking the digital dollar. Finally, stablecoin regulation is coming. https://t.co/GjWjDVjqut pic.twitter.com/RhVZaonA5K
— Forbes (@Forbes) March 21, 2023
H.B. 1193 contains many beneficial proposed changes to the code, but the authors of the bill also added a few very unneeded, deeply worrisome elements.
Should the federal government decide to construct one in the future, it would make it simpler for customers to use a programmed, traceable, controlled central bank digital dollar in some types of commercial operations.
Features in the current UCC already make it possible for central bank digital currency to be utilized for a variety of business transactions. The UCC should be changed to make it considerably more difficult to use CBDCs, which are now absent from most major economies in the globe.
Legislators should discourage the use of CBDCs, rather than promote them.
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— michael (@golf2ball) March 20, 2023
The suggested revisions would create obstacles for cryptocurrencies like Bitcoin to ever be designated “money,” in addition to additional language that would extend to future CBDCs.
We ought to be extremely grateful that Noem enforced her rejection of the measure for these and other reasons.
It’s crucial to remember that the suggested UCC modifications would neither create digital money, nor necessitate its establishment in the future.
Yet, it would assist in creating the groundwork for a future central bank digital currency or the type of government-mandated digital currency.
The measure contained no clauses that would have prohibited the use of a programmed central bank digital currency as it relates to the commercial code, making it easier to use CBDCs in certain types of transactions.