South Carolina Proposes Legislation to Prohibit Central Bank Digital Currencies
South Carolina’s state legislators are pushing for the prohibition of Central Bank Digital Currencies (CBDCs) within the state. This move is manifesting through proposed bills including House Bill 4373, House Bill 4442, Senate Bill 834, and Senate Bill 861. These bills are backed by a group of state representatives and senators who have a shared vision of modifying the state’s definition of money under the Uniform Commercial Code, with the objective of excluding CBDCs.
Scope of the Proposed Bills
The proposed legislation does not discriminate against the issuing authority of the CBDCs, be it the U.S. Federal Reserve, a federal agency, or foreign entities. If these bills find favor and become law, they would prevent banking corporations within South Carolina from transacting with CBDCs.
The Motive Behind the Legislation
The push for these bills emerges as a response to efforts by the Uniform Law Commission and other entities advocating for the adoption of CBDCs. Some state lawmakers view the rise of CBDCs as a potential threat to Americans’ liberty and privacy. The argument from these lawmakers is that a CBDC would expand government power, reduce personal freedoms, and eliminate financial privacy by enabling the Federal Reserve to control and monitor transactions. They point to recent international events as examples of government overreach and express concerns over the potential for a global digital currency system.
A Larger Call to Restore Sound Money Principles
The proposed legislation is part of a larger call for South Carolina to restore sound money principles. This includes recognizing gold and silver as legal tender and establishing a state bullion depository. The lawmakers see this as a defense against potential totalitarian control. The fate of these legislations and the impact they will have on the American economy remains to be seen.
