In the US state of South Dakota, legislation has been introduced to amend the Uniform Commercial Code (UCC) in order to narrow the definition of money and exclude cryptocurrencies. Central bank digital currencies (CBDCs) would continue to be considered money under the proposed new definition.
The 117-page amendment, introduced in the state House of Representatives by Republican Mike Stevens, defines “money” as “a medium of exchange that is currently authorized or adopted by a national or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.” The bill continued:
“The term does not include an electronic record that is a medium of exchange registered 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.”
In particular, CBDCs fall under the proposed definition of money, unlike cryptocurrencies. He received a sharp reaction from the head of the conservative State Freedom Caucasus network, Andy Roth.
The South Dakota bill stands in stark contrast to the “CBDC Surveillance State Law” recently introduced in the US House of Representatives by Minnesota Republican Tom Emmer, considered a cryptocurrency advocate.
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 UCC introduced the concept of “controllable electronic records” in amendments passed in July intended to regulate digital assets at the state level. The new UCC articles also deal separately with cryptocurrencies and CBDCs. The United States does not have a CBDC, although a “digital dollar” is the subject of research in the US government and other groups, such as the Digital Dollar Project.
Juliette Moringiello, a member of the joint committee of the US Uniform Law Commission and the American Law Institute that finalized the changes to the UCC, told Cointelegraph ahead of its finalization that the changes to the UCC “create gigantic choice problems.” law, and if any company or anyone with crypto ends up in bankruptcy, a bankruptcy court wouldn’t know which law to apply.”
The proposed law would take effect on July 1, 2024, if approved.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.