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”?