HB1161 prohibits the state of South Dakota and its agencies from accepting central bank digital currencies (CBDCs) for any payments, including taxes, fees, and debts. Additionally, it mandates that businesses accepting CBDCs must also accept another form of legal tender.
The South Dakota State Senate passed HB1161 on February 15, 2024 by a vote of 32 to 1. We have assigned pluses to the ayes because Article I, Sections 8 and 10 of the U.S. Constitution state that only Congress has the power to coin money. States should take steps to return to the gold standard and embrace the use of real money. Digital currency can be easily tracked, allowing the government to monitor all financial transactions. This could lead to unconstitutional and extensive surveillance of individuals’ financial activities, eroding personal privacy and potentially freezing assets, which is already happening in other countries.