South Dakota Governor Kristi Noem Vetoes Central Bank Digital Currency Bill

Gov. Kristi Noem (R-SD), vetoed a bill which would have classified a possible Central bank Digital currency Money While exclusion cryptocurrencies.

The Federal Reserve has been considering adopting a digital dollar for several years. Noem spoke in a veto Let me know To the South Dakota House of Representatives: The legislation “opens the door to the risk that the federal government could more easily adopt a CBDC, which then may become the only viable digital currency.”

“At this moment in time, such a government-backed electronic currency has not yet been created,” Noem said this to legislators. “More importantly, South Dakota should not open the door to a potential future overreach by the federal government.”

The Bill Would have defined money as “money” “medium of exchange that is currently authorized or adopted by a domestic or foreign government.” Lawmakers Passed The measure 49-17 was passed in the House of Representatives, and 24-9 in Senate. Both of these margins would allow for the repeal of the veto in both chambers.

Noem said that cryptocurrencies are decentralized and that they can be used to create new currencies. digital assets It can be transferred between virtual wallets and would not be considered money under the legislation. She stated that the bill was therefore “needlessly” Citizens are restricted in their freedoms and put at risk “business disadvantage” Discouragement of development in the nascent industry.

Opponents of a possible central bank digital currency assert This would make citizens more vulnerable to government surveillance and censorship. Digital assets that central banks manage are not decentralized like Bitcoin and Ethereum and are tied to analog counterparts. Jerome Powell, Federal Reserve Chair Two years ago, he “mind is open” A digital dollar, noting that it was “legitimately undecided” Whether the “benefits outweigh the costs” Digital currencies of the central banks

“We would want very broad support in society and in Congress,” He told legislators. “It’s a very, very important initiative, and I do think we should ideally get authorization.”

According to a, a central bank would create cryptocurrencies as a digital currency to preserve the dollar’s international status and mitigate the risks inherent in cryptocurrencies like liquidity risk and credit risk. Paper Federal Reserve The Federal Reserve recently notified the central bank. Conducted To determine the outcome, you can simulate it with Citi, Mastercard or BNY Mellon. “feasibility of payments between financial institutions” Use tokenized assets

After customers discovered that FTX had commingled funds from Alameda Research and trading company Alameda Research, there was increased skepticism about cryptocurrency. Bankman-Fried plead Not guilty Multiple charges were brought against him, including conspiracy to wirefraud, conspiracy to defraud securities fraud and conspiracy to finance campaign violations.

Recent turmoil in cryptocurrency and the widely publicized criminal case against Bankman-Fried have rapidly damaged consumers’ faith in these new assets. Survey CNBC and Momentive conducted a survey that found 60% of Americans view the risk of investing in cryptocurrency as a concern. “high,” However, only 10% believe that the assets pose little or no risk.

“From South Dakota Governor Kristi Noem Vetoes Central Bank Digital Currency Bill“

“The views and opinions expressed here are solely those of the author of the article and not necessarily shared or endorsed by Conservative News Daily”