Open Letter to Gov. Burgum & the ND State Legislature
Members of the ND State Legislature,
Although HB 1082 has been signed into law, I would like to address the mischaracterization of the concerns surrounding this bill. According to Ed Smith, Chair of the Uniform Commercial Code 2022 Amendments Enactment Committee, misinformation is being spread regarding North Dakota’s HB 1082 and similar bills around the country. According to Mr. Smith, "There is a national effort to oppose these bills due to a misperception that the amendments will
prevent the use of Bitcoin and other cryptocurrencies and
encourage the development of a central bank digital currency in the United States. Both statements are 100% false.”
This statement is misleading. The argument is not that the use of Bitcoin and other cryptocurrencies will be prevented. Nor is the argument that the bill encourages the development of a central bank digital currency. The concern is that cryptocurrencies will be excluded from the definition of money while paving the way for CBDC being pursued by the Biden Administration.
According to ULC's own documents: “The amendments respond to market concerns about the lack of definitive commercial law rules for transactions involving digital assets, especially relating to (a) negotiability for virtual (non-fiat) currencies, (b) certain electronic payment rights, (c) secured lending against virtual (non-fiat) currencies, and (d) security interests in electronic (fiat) money, such as central bank digital currencies." This is reiterated in A Summary of the 2022 Amendments to the Uniform Commercial Code, and as Steven Weise explains in the webinar UCC Amendments Part 1: Digital Assets, "Bitcoin will not be money,” but “Central Bank Digital Currency, CBDC … could be money.”
Clips of that video:
“bitcoin will not be money,”
“Central Bank Digital Currency, CBDC … could be money.”
Mr. Smith urged the amendments to be understood through the context of the entire bill rather than take at face value what the language clearly states. However, I encourage you all to consider the amendments in the context of what is transpiring on a global and federal level. As mentioned, President Biden announced a commitment to pursue a CBDC. The recent collapse of three major banks will likely only strengthen this resolve to introduce a central currency. Also related: Fed Now is a pilot program being launched in July that is being sold as an improvement on the domestic payment system, even though we already have instant payment availability. Fed Now is the infrastructure that needs to be in place in order for CBDC to work. It will be an optional program in the beginning, but the well-founded concern is that everyone will eventually be required to have a Fed Now account. It'll be like a government run PayPal account which sounds convenient, but the transfer of money will be controlled on both ends by the federal government. Not good.
There is clearly enough legitimate concern from the public to warrant a reconsideration on these amendments. Why not address President Biden’s plan to pursue a Central Bank Digital Currency and formulate a response to protect the state of North Dakota from the federal government’s weaponization of the financial sector? Governor Ron DeSantis is choosing to play offense - not defense - against the federal government’s agenda to control every aspect of our lives by his legislative proposal to prohibit the use of a federally adopted Central Bank Digital Currency as money within Florida’s Uniform Commercial Code (UCC). Why don’t we do the same? The state legislature does not exist to simply carry out the wishes of the federal government in exchange for money. It also does not have to be ruled by monetary policy from an unelected commission.
As the federal government grows more powerful and more tyrannical by the day, it will be up to state legislatures to protect our rights and freedoms provided under the Constitution. Governor Burgum and the ND state legislature failed to do this with the passage of HB 1082. Policy decision mistakes happen, particularly when inundated with too many bills in too short of a timeframe and particularly when lobbied by professional associations. It is my hope that legislators will listen to the concerns of individual citizens rather than corporate interests and pass legislation to expressly protect North Dakotans from a central bank digital currency.
Thank you for your consideration on this matter and for your service to North Dakota.
Sincerely,
Amber Vibeto
Executive Director, North Dakota Can
