SD Bankers Association planning to bring legislation that would reject central bank digital currency to 2024 legislative session

PIERRE, S.D.(DRGNews)- The South Dakota Bankers Association plans to bring forward proposals opposing the adoption of central bank digital currency when the 99th Session of the South Dakota Legislature convenes in January 2024.

Bankers Association President Karl Adam says during the 2023 session, the bankers tried to pass HB1193, which would have updated provisions of the state’s Uniform Commercial Code. He says opposition to HB 1193 disseminated a lot of misinformation, resulting in Gov. Kristi Noem vetoing the bill, in part, because of the concern that the federal government would adopt a Central Bank Digital Currency.

Adam says federal central bank digital currency is a separate issue from the state’s Uniform Commercial Code.

Adam says central bank digital currency is also completely different than cryptocurrency such as bitcoin.

Adam says the legislation they’re working on would provide legal standing for the virtual currencies and would prohibit the State of South Dakota and its affiliated agencies from accepting a central bank digital currency as a form of payment.