Aiken County, South Carolina – In a move to safeguard the financial autonomy of South Carolina, State Representative Bill Taylor, a Republican representing the eastern sector of Aiken County, has introduced a bill aimed at prohibiting the utilization of central bank digital currency (CBDC) within the state.
During a presentation to the Kiwanis Club of Aiken at the Willcox, Taylor outlined his concerns and motivations behind the introduced legislation. The bill specifically targets CBDC, a form of digital currency distinct from commonly known decentralized alternatives like Bitcoin and Ethereum, as it is issued and overseen by a central entity, such as the Federal Reserve.
Taylor emphasized that while most currency today exists in digital forms, managed privately between account holders and chosen entities, entrusting the federal government with the responsibility of managing and storing digital currency is a perilous prospect. Drawing a cautionary parallel with China’s experience, Taylor expressed reservations about the potential risks associated with such centralized control.
“You do not want the federal government,” Taylor warned, “to be responsible for storing it. That could be the worst. China does that and it’s not worked out too well.”
The legislator asserted that citizens should refrain from placing their trust in a Federal Reserve digital currency, citing concerns about potential vulnerabilities and the ability of authorities to exert control, including the prospect of freezing assets.
According to Taylor, the bill was crafted in collaboration with an experienced individual responsible for drafting South Carolina’s tax laws over the past half-century. The proposed legislation, filed on May 4, explicitly declares South Carolina’s refusal to recognize a Federal Reserve digital currency.
Having garnered substantial support, the bill boasts more than 40 co-sponsors, including all Republican representatives from Aiken County in the South Carolina House of Representatives. As of now, the bill has been referred to the Labor, Commerce, and Industry Committee for further consideration.
In emphasizing the sentiments of the public, Taylor asserted that individuals are apprehensive about placing their savings under the management of the Federal Reserve, underlining the importance of safeguarding citizens’ financial autonomy in the digital age. The legislative proposal is poised to undergo scrutiny and deliberation in the committee as South Carolina navigates the evolving landscape of digital currencies.
