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If You Can’t Beat the Lunatics, Join ‘Em—SD Bankers Decide to Oppose Central Bank Digital Currency

Realizing that genuine informed debate with radical conspiracy-theorizing right-wingers is impossible, the South Dakota Bankers Association has made a sensible tactical move that costs them nothing to get the Uniform Commercial Code updates they want.

Recall that last Session, Governor Kristi Noem vetoed House Bill 1193 under the utterly misinformative pretense that updating the Uniform Commercial Code to put cryptocurrency on a more solid footing would facilitate the creation of a central bank digital currency (CBDC). The Federal Reserve is nowhere near issuing a CBDC, and even if it were, the passage of HB 1193 would not have sped that issuance, and the veto of HB 1193 did nothing to slow that issuance.

The South Dakota Bankers Association tried really hard to talk sense into the Governor and the Legislature last March. Now they’ve realized they can get their UCC updates much more easily by adopting the right wing’s bogeyman nonsense:

The South Dakota Bankers Association (SDBA) announced today that it will bring forward proposals opposing and rejecting the adoption of central bank digital currency (CBDC) to the 99th Session of the South Dakota Legislature. SDBA, through its alignment with the American Bankers Association, has helped to craft model policy circulated through the American Legislative Exchange Council (ALEC) processes this summer. The model policy will be voted upon by the ALEC board this coming Saturday, August 26, and if passed, SDBA will offer it to the upcoming South Dakota legislative session for consideration.

“During the 2023 South Dakota Legislature, the opposition to HB 1193 ‘An Act to Amend Provisions of the Uniform Commercial Code (UCC),’ disseminated a lot of misinformation. As a result, Gov. Kristi Noem vetoed the HB 1193, in part because there was concern the federal government would adopt a Central Bank Digital Currency (CBDC). The veto message specified potential ‘overreach by the federal government,’ but connecting that claim to 1193 is simply unfounded,” said SDBA president, Karl Adam. “While HB 1193 did nothing to create a CBDC, rejection of CBDC is a policy goal we share with those opponents. We can find no upside to the adoption of a CBDC in this free nation. Therefore, we are pleased to see that ALEC’s proposed model policy does exactly that. That’s why we plan to bring forward similar policy proposals during the 2024 South Dakota Legislative Session” [South Dakota Bankers Association, press release, 2023.08.23].

The ALEC resolution in question appears to be this draft. The only real spoke the resolution might throw in the wheel of the Federal Reserve’s still far-off, unlikely deployment of a CBDC is its ban on state agencies taking payments in CBDCs. But that action wouldn’t stop the Fed from studying and adopting a CBDC any more than it will force the 11 countries that have fully launched a digital currency to abort their CBDCs.

But hey, if you want to pass UCC reform, and the only thing standing in the way is a bunch of kooks shouting, “UCC reform will summon zombies!” why not just say, “We hate zombies, too. Here’s a bill banning zombies, and here’s our UCC reform bill with anti-zombie measures”?


  1. grudznick 2023-08-27 11:56

    I am not what to think about zombie banning bills. On the surface they seem mostly harmless.

  2. Arlo Blundt 2023-08-27 15:03

    There is a lot of craziness out there. Having the Bankers join in the craziness doesn’t make things less crazy. I’m remaining a “cash and carry” type of guy.

  3. Richard Schriever 2023-08-27 15:25

    Good grief – 90% o9f the bakers’ “assets” are “Future Values”, not “real money”. In addition, virtually ALL of their transactions are conducted VIRTUALLY (I.E., digitally) today. Nutso nutso nutso.

  4. grudznick 2023-08-27 17:53

    Mr. Blundt is righter-than-right.

    Bury your jars deep, and keep the maps in your mind or on paper napkins that wont dissolve if you fall in a pond. Consider giving copies of your maps to the same people you would put on the bank access list, and you are guaranteed to not lose money when Mr. Uncle Joe President Biden tanks us all, again. Keep your cash tight. Put it in gold, if you can, or in grudzCOIN, if you are tech-savvy. You don’t have to bury grudzCOIN to keep it save. It’s in this cloud place. Very safe.

  5. Arlo Blundt 2023-08-27 19:58

    No Grudznick..I’d keep my money in a good local Savings and Loan, invest it in your community. Gold is an investment in your own ego, it has as much risk as anything else. Silver is highly suspect and oversold. Bitcoin stuff is a gimmick. They crop up from time to time. Work as long as the gullible keep coming.

  6. grudznick 2023-08-27 20:21

    Oh, Mr. Blundt, I’d be leery of those savings and loan fellows. Use a real, American bank. Or invest your money in US Dollars with your local financial fellow who can move your monies around as you choose.

    But make no mistake, grudzCOIN is not like that BITcoin scam. You can turn over some cash into grudzCOIN with zero fear of losing it.
    I’ll send you a brochure.

  7. PWK 2023-08-27 21:09

    The logic of a banker in South Dakota starts and ends with interest – self interest.

  8. John 2023-08-28 08:00

    South Dakota needs a state bank, a socialist bank . . . . like North Dakota has. North Dakota never had a savings and loan crisis, never had a mortgage crisis. But North Dakota has had steady banking in the public interest.

  9. Mike Zitterich 2023-08-28 11:15


    The People of the State of South Dakota, can, through their Legislature, enact, and put into effect a Banking Law of which allows for the people to establish a bank, for the purposes of circulating money within the “State” itself.

    If a general banking law shall be enacted it shall provide for the registry and countersigning by an officer of this state of all bills or paper credit designed to circulate as money, and require security to the full amount thereof, to be deposited with the state treasurer, in the approved securities of the state or of the United States, to be rated at ten per centum below their par value, and in case of their depreciation the deficiency shall be made good by depositing additional securities. – Article 18, Section 1 of the South Dakota Constitution

    Upon adopting such law, the People would have to delegate to the State Government to establish a “registry” in order to inventory, and record, and provide back to the people all public records of any such forms of currency to be considered legal tender.

    The law would have to establish the following:

    Establish a Registry, a place of which all things are to be registered, and recorded, and the place of which all documents are to be recorded, managed, and kept for safekeeping, allowing the people to create a public record of all things;

    We have to Employ a Public Records Officer, someone who can manage the day to day management duties for records;

    All Currency must be recorded, and rated at Ten Per Centum below their recorded value – The terms substantial part and substantially mean ten per centum (10 percent) or more in surface area. and substantially mean ten per centum (10 percent) or more in surface area;

    In the event of deficiency, the deficiency must be made good by depositing additional securities into the treasury.

    Under the Banking Act, allowing any such “Citizen” of the State to establish a Bank, with the effect of creating, and circulating currency under the “State” – the Public Officer must countersign, and make known all such types of currency to the people.

    Meaning, as a “person” creates, and affixes their name to the document in question, the “Currency”, the Public Officer must then write your name on a document that already has the signature of another person, especially in order to show that you are certain that the first person is who they say they are.

    Because “Currency” is a form of money issued in the form of paper and coins, used as a medium of exchange, a person, a citizen of this “State” is in fact, providing it in a form of contract, or replacement of another object, in return for something of value held by another.

    Within the State of South Dakota – anything of legal value could be any such asset, or commodity such as Land, Wheat, Corn, Soybeans, any such Mineral, or Natural Resource held within the “State”, of which has a recorded value.

    Therefore, in the public affairs of the “State” – the Public Officer of the Records must create a public record, registering those commodities, and create a journal of fact, of which each of those commodities shall be valued at, allowing the “people” to know, and understand the exchange rate, of which their paper money, or coins shall be valued at, as they enter into such contract.

    Contract – an agreement between two parties that creates an obligation to perform (or not perform) a particular duty.

    To make such a contract legal, in order to quantify, and stamp it as legal tender under our law, and in order to protect all citizens of the “State’ – the Public Record Officer must countersign, and record the means of the exchange within our public register.

    The South Dakota Constitution, simply states, that any “person” or citizen of this State must become, a licensed professional, of whom has the ability to first, originate, and establish a form of paper money, or coin, of which is then backed by the “State”.

    This licensed person, or citizen of the State is furthermore, now referred to as a “Banker”, or someone who owns a bank or who has an important position in a bank, an investment/merchant banker.

    However, upon establishing a “bank” within the State of South Dakota, as per our constitution, as per Article 18, Section 2 – Every bank, banking company or corporation shall be required to cease all banking operations within twenty years from the time of its organization, and promptly thereafter close its business, however, each bank has the right to form a corporation, giving it the same equal right to be sued, or to sue, in order to protect its interests, its liabilities, its debts owed.

    So, as per, under the law, as adopted by the people, and their representatives, the people would therefore be protected by run-away banking activities, let alone protected from those people, of whom may attempt to over compensate the people, let alone bar any such citizen, or organization from prolonging, let alone capitalizing on the people themselves.

    I would assume, by limiting banking companies to 20 years or less, you would keep from allowing a small group of persons from taking advantage, let alone collaborating, and interfering in the private property rights of the people, restricting banks from organizing among each other, to strip the people of their property rights, let alone owning to much stock of the states natural resources, minerals, land, and other commodities.
    So, as We, the people of South Dakota, grateful to Almighty God for our civil and religious liberties, in order to form a more perfect and independent government, establish justice, insure tranquility, provide for the common defense, promote the general welfare and preserve to ourselves and to our posterity the blessings of liberty, as per our preamble to the constitution, we have vowed, to protect ALL citizens of the State to uphold our common morals, values, and self discipline as guided by our creator.

    So, by adopting a law, that gives to the people of the state, the ability to form, establish, and create their own coins, and paper money, ‘we’ as per our constitution, must appoint a moral, and valued person of whom must protect the people from those persons who may or may not take advantage of the people, requiring such persons who wish to become “bankers’ – to hold them to a license, permitting them to create, print, and circulate paper money under the State of South Dakota.

    Why then, if ‘we’ are allowed to create our own currency, why then are we binding ourselves only to the Federal Reserve Bank Note? Have ‘we’ as South Dakota Citizens contracted ourselves, obligating ourselves merely to the Federal Reserve itself, and for what purpose, could that be?

    Well, in the year 1933, the people of the State adopted a codified law of which formed and established a Banking Commission, of which shall become a five member commission, of whom shall be appointed by the Governor. The Director, who works within the Department of Labor and Regulation, receives his direction from this commission, of which at least three members have to be officers, or directors of a State or National Bank upon taking the appointment, while the remaining two members, can any such citizen or person non-affiliated with any bank or business…
    Connecting the dots even further, we find that under the 1933 Federal Emergency Banking Act, adopted by Congress, and signed by Franklin D. Roosevelt, the “States’ merely contracted themselves to the Federal Reserve Bank, a private, national bank of which has been great authority to control, manage, and circulate a national currency, of which allows a small group of persons to create bank notes, bound, and inventoried by the “National Reserve”, and that meant, “State Currencies” let alone Federal Certificates, held by the Federal Government itself became devalued, as more “States’ contractually, obligated themselves to the “National Reserve” themselves.

    And soon later, during the same decade of the 1930’s – the Uniform Commercial Code became the “law” of the land, of which furthermore, gave more power to the Federal Treasury, now bound to the Federal Reserve Bank, the power to centralize, regulate, and control all means of labor and regulation related to banking, paper money, and coinage.

    And because the State of South Dakota, and it’s citizens acting under it became more obligated, and dependent on Federal Reserve Bank Notes, Federal Grants, Tax Subsidies, Credits, Allowances – by contract, ‘we’ simply gave away our power to control, print, and manage our own State based currencies today.

    But truth is, American Citizens of South Dakota can if we allow ourselves to, license ourselves, regulate ourselves, control ourselves with the goal of creating our own form of currency, so long as we also adhere to the U.S Constitution, of honoring other State Currencies, let alone where disputes may come between states, exchange our currencies for Federal Certificates.

    After learning of this, how do we get back to a Nation of Self Sufficient Americans, back to using our Own State Currencies?

  10. Frank Kloucek 2023-08-28 12:57

    Over the years both Republican and Democratic legislators have tried to create a central bank such as North Dakotas system. I wonder who opposed such an idea?

  11. Arlo Blundt 2023-08-28 13:21

    Mr. Zittrick..Take your friend Grudznick’s advice and tighten up your bloggings. I lost you after the second sentence. Mr. Kloucek summed up the issue in two sentences.

  12. e platypus onion 2023-08-28 17:09

    Dems don’t have an ounce of clout in South Duhkots (or iowa for that matter) so even if they opposed central banking they could do nothing about it.

  13. Mike Zitterich 2023-08-28 20:51

    While I do support South Dakotan’s creating it’s own State Bank, that works like North Dakota, albeit, without the income tax, I do not see it occurring, either. as someone once once told me, as a State, “WE” are in love with our Private Trusts, that we simply allow the citizens to manage their own assets by allowing them to establish their own Trusts – Commercial (DBA, LLC, CORP, etc), Land Trusts, Real Property Trusts, Retirement Trusts, Healthcare Trusts, to even the South Dakota Employee Retirement Trusts, etc. The manner of which “WE” can so easily establish our Trust’s here in South Dakota, gives to the 889,000 Citizens of the State the ability to Establish for themselves, their own Self Banking Empire. Every South Dakotan should immediately commercialize their First and Last Name, obtaining a EIN # in that name, and keep their Commercial Assets buried inside that Commercial Asset, while their profits then transferred to their Other Trusts – Other Business Assets, Non-Profit Trusts, Retirement Trusts, Education Trusts, Healthcare Trusts, Land and Real Property Trusts. Yes, even if you are a lonely W-4 Employee, commercialize your name and win the game. Keeps the Federal Govt off our buts, out of our Republic.

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