Noem vetoes bill that would recognize central bank digital currency but not cryptocurrency

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.