SDBA Bringing Legislation to Reject CBDCs and Protect Financial Privacy

For Immediate Release: Wednesday, August 23, 2023
For More Information: 605.224.1653 or [email protected]

PIERRE, SD – Aug. 23, 2023– 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.”

“HB 1193 was and will be good law for South Dakotans. Although it did not become law in 2023, we’re hopeful that during the 2024 South Dakota Legislative Session, the model policy ABA and ALEC have created will settle some of the confusion and fears that became part of the discussion around HB 1193,” said SDBA Board Chair, David Nelson, President/CEO of First Fidelity Bank in Burke, South Dakota. “We look forward to seeing continued engagement and support from our industry cohorts to ensure that South Dakotans have the benefit of up-to-date commercial law and maintain the freedom to take part in the economy as they see fit. We don’t need CBDC in this country.”

The SDBA has begun seeking sponsors and intends to proceed with its early filing of policy proposals as soon as possible. For additional context on HB 1193, go to https://www.sdba.com/latest-news-blog to read the SDBA’s op eds that were published in the spring supporting the measure.

About the South Dakota Bankers Association
The South Dakota Bankers Association (SDBA) is the professional and trade association for South Dakota’s financial services industry. Established in 1884, the SDBA enhances the ability of its members to compete effectively and profitably in the financial services industry. The SDBA helps educate, advocate and grow a diverse mix of financial institutions throughout the state. For more information about the SDBA, visit www.sdba.com.