South Dakota aims to redefine currency composition with new bill

03/02/2023 10:06 • Digital Disruptors • 127 views

On March 2, South Dakota, the United States, is taking action to try to redefine the composition of currency, and involves the classification of cryptocurrency. A bill in the state entitled “Amendment to the Uniform Commercial Code” indicates that digital currencies such as Bitcoin will be excluded from the definition of currency because they come from individuals or organizations. According to the proposed amendment, a possible medium of exchange will only be recognized as currency if it is “authorized or adopted” by the government.

South Dakota proposed a bill to change the definition of currency and exclude digital currency

Analysis based on this information:

South Dakota has announced its decision to redefine the composition of currency by introducing a new bill on March 2. The bill titled “Amendment to the Uniform Commercial Code” has brought forth the classification of cryptocurrency, leading to an interesting twist in the definition of currency.

The amendment outlines that digital currencies such as Bitcoin will be excluded from the definition of currency because they come from individuals or organizations rather than being regulated by any government body. Instead, only a medium of exchange, which is “authorized or adopted” by the government, will be recognized as a form of currency. This would mean that cryptocurrencies will not be categorized as currency in South Dakota and will instead be treated more like commodities or assets.

This move by South Dakota to give government authorized mediums of exchange more authority over cryptocurrencies is expected to bring some regulation to the crypto industry, which has so far remained unregulated due to its decentralized nature. The bill would also give the U.S. government more control over the use of cryptocurrencies to combat illegal or illicit activities such as money laundering.

The proposed amendment has been met with mixed reactions from the cryptocurrency industry. While some see it as a step towards legitimizing the industry, others fear this could be the start of further government interventions, leading to the loss of the decentralized essence of cryptocurrencies.

However, it is important to note that the bill has not yet been implemented and is still in the early stages of the legislative process. While it has already been passed by the Senate Judiciary Committee, it needs to be approved by both the house and the governor before it can become law.

In conclusion, South Dakota’s move to redefine the composition of currency with the amendment to the Uniform Commercial Code is a significant step towards regulating cryptocurrencies. The decision to exclude digital currencies from the definition of currency could be a game-changer in the digital world, and it remains to be seen how this will develop in the future.

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South Dakota aims to redefine currency composition with new bill

South Dakota proposed a bill to change the definition of currency and exclude digital currency

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