The stunning breaking news that Dennis Porter, the CEO and co-founder of Satoshi Act Fund, revealed today on Twitter can be interpreted as a significant attack against Bitcoin in the United States of America. According to Porter, South Dakota is attempting to enact a law that will exempt Bitcoin from the definition of “money” while still allowing CBDCs to operate in a safe environment.
According to Porter, the bill stipulates that no medium of exchange can be considered “money” unless it was “approved or adopted by the government” before it existed as a medium of exchange. Porter continues, “This law would ensure that only governments can create “money,” which on its face would exclude all digital assets. A current authorised or adopted medium of exchange by a local or foreign authority is referred to as “money” in the bill. A monetary unit of account created by an international body or by an agreement between two or more countries is included in the term.
An electronic record that is a medium of exchange recorded and transferred in a system that already existed and was in use for the medium of exchange prior to the government authorising or adopting the medium of exchange is not included in the term.
The worst thing, in Porter’s opinion, is that this policy is being attempted to be enforced in 21 different US states. “There is clearly an aim to develop a bull work of pro-CBDC states that also exclude digital assets like Bitcoin from the definition of money,” Porter read the law, presenting the map below of U.S. states that potentially follow the measure.
According to Michael Ossowski, Deputy Director of the Consumer Choice Center (CCC), the language used by South Dakota is conventional and is already used by other states. Although it is based on a model policy from the association of banks supervisors, who were able to work with the Uniform Law Commission to make this suggestion, the measure is still a threat to Bitcoin, he continued. Although it won’t have much bite, it still poses a threat to Bitcoin.
The State Freedom Caucus Network’s president, Andy Roth, agreed that this is a “major deal.” All states must abide by a set of commercial rules known as the Uniform Commercial Code (UCC), which regulates financial agreements and transactions. The UCC is developing the structure for CBDCs to be accepted (and Bitcoin to be banned) via Amazon and all other businesses, Roth continued. any and all digital transactions. This needs to end. The good news is that there are still 49 states where we can stop this.
Yet it’s important to note that the Satoshi Act Fund has significantly aided the growing acceptance of Bitcoin in many U.S. states. According to a post from Bitcoinist, among others, Bitcoin-friendly laws have been passed in Texas, New Hampshire, and Montana.
The price of bitcoin was $23,397 at the time of publication, trying to hold onto crucial support at $23,350.
