South Dakota will treat CBDCs as money
The South Dakota Senate is working on a bill to treat digital currencies issued by central banks as legal cash
The Senate of South Dakota, a state located in the Midwestern United States, recently passed a law that establishes that digital currencies issued by central banks, known as CBDCs, will be considered as legal money in the state. However, this law does not apply to other cryptocurrencies, such as Bitcoin or Ethereum.
The new law defines CBDCs as “a medium of exchange, unit of account, and store of value issued by a digital central bank.” This means that CBDCs will have the same legal status as fiat money in South Dakota and can be used to pay debts, taxes, and other government purposes.
According to proponents of the law, this could help South Dakota become a hub for innovation in the cryptocurrency and fintech sector. Senator Mike Stevens, who introduced the bill, stated that “South Dakota has an opportunity to lead the way in financial technology adoption and cash protection.”
However, some critics point out that the law could be limiting for cryptocurrencies and innovation in the sector. For example, South Dakota joins other US states that have created laws to limit or prohibit the use of cryptocurrency in the past. Additionally, some experts have argued that CBDCs can be used to strengthen government control over money.
(Reference image source: file)
Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram
Comments are closed.