Under the South Dakota Uniform Commercial Code (UCC), "money" means "a medium of exchange currently authorized or adopted by a domestic or foreign government. South Dakota's new law states that "The term is not intended and cannot be construed to create or adopt a central bank digital currency." Similar legislation excluding CBDC from the definition of money has already been signed as law in Indiana and Florida.

South Dakota Gov. Kristi Noem signed two bills into law to reject a central bank digital currency (CBDC), removing it from the definition of money in the state and banning the state from accepting it as payment.

Rep. Mike Stevens and a bipartisan coalition of cosponsors introduced House Bill 1163 (HB1163) and House Bill 1161 (HB1161). HB1163 expressly excludes a CBDC from the definition of money in South Dakota, and HB1161 prohibits state agencies from accepting CBDC as a form of payment.

DEFINING MONEY

Under the South Dakota Uniform Commercial Code (UCC), "money" means "a medium of exchange currently authorized or adopted by a domestic or foreign government. The term includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries."

HB1163 adds "The term is not intended and cannot be construed to create or adopt a central bank digital currency" to that definition.

The House previously approved the measure by a 44-21 vote. Last week, the Senate concurred with a vote of 27-6.

Similar legislation excluding CBDC from the definition of money has already been signed as law in Indiana and Florida.