Governor Vetoes Routine Update of Uniform Commercial Code (UCC)
Veto Override Fight Begins
Bankers Association Leads - Chamber Supports
If the economy returns to the barter system, many of us are doomed.
In today’s world, no one really thinks about how money moves from their bank account to the bank account of someone in Ireland who knits one-armed sweaters, and how those very single-armed sweaters end up in Bristol, South Dakota.
The rules governing that transaction, and every other transaction, are known as the Uniform Commercial Code (UCC); which we take for granted. This is one of the real miracles of the modern world. Updating that code should also be routine. And it was, until political forces ginned up mysterious conspiracy theories and misrepresented a many facts in the update and even convinced our governor to agree and veto the update.
HB 1193 is more than 100 pages long and represents years of work by the Commission that over sees the UCC, including several representatives from South Dakota. Opponents, unfortunately including Governor Noem, have focused on the vagueness of cryptocurrencies such as Bitcoin.
This UCC update does not recognize Bitcoin as “money” which opponents decry as a mistake. Bankers, by which Capitol-ism recognizes as the true authorities on all things monetary, point out that Bitcoin, as structured today, is more of an asset such as owning a share of stock, than as real currency. The value of Bitcoin fluctuates in the market place. If Bitcoin is recognized as “money” then car dealers would be required to accept Bitcoin as payment and pray the value of that coin is the same when they go looking to sell it.
The Governor’s complaint that the UCC update is laying the ground work for some type of electronic currency that will be controlled by the government is rather hard to understand, given the fact that today the money we use is controlled by the Federal Reserve Bank and the laws of the United States. Yes, the future will need an electronic currency of some kind and no, it is none of the cryptocurrencies in use today.
ACTION NEEDED – Please contact any legislator you happen to know and ask them to vote to override the veto of HB 1193. It doesn’t matter how you know them and they don’t have to be your Senator or Representative. They might be distant cousin you have been meaning to get reacquainted with or a member of your pinochle club. Here is a link to contact information for each legislator https:/sdlegislature.gov/Legislators/Listing/68.
Here is a link to a more detailed explanation of the UCC update (HB 1193) from the South Dakota Bankers Association. HB 1193 True False
Thank you for your support of the South Dakota Chamber of Commerce & Industry.