Kristi Noem, the Governor of South Dakota and a prominent figure in the Republican Party, has become an advocate for Central Bank Digital Currency (CBDC). CBDCs are digital currencies issued by central banks with the goal of providing consumers and businesses with access to modern payment methods.
CBDCs would provide users with greater convenience than traditional payments as well as improved security due to their use of cryptography. Additionally, they could potentially reduce transaction costs and offer faster settlement times compared to existing payment options.
Governor Noem’s enthusiasm for CBDCs was initially sparked when she attended a blockchain summit in 2018 hosted by IBM. After learning more about distributed ledger technology (DLT) and its potential applications, she became convinced that it could be used to help her state’s economy grow through increased financial inclusion. As such, South Dakota is now one of many states exploring how a CBDC might work within its jurisdiction.
Governor Noem subsequently spoke at the 2019 CryptoCompare Blockchain Summit in London where she elaborated on her vision for digital currency adoption in South Dakota: “We need our citizens to have access not only to traditional banking but also emerging technologies like blockchain… We must ensure that we remain competitive so that new products can be developed here.” She went on further to suggest ways in which governments can leverage DLT solutions: “It’s important for us [governments]to understand what these systems are capable of doing…and then determine if there is something government should do differently or better because this technology exists.”
Overall, Kristi Noem serves as an example of how central bank digital currencies may soon become part of everyday life around the world under different regulatory frameworks set out by individual countries or regions—with potential benefits both economically and socially across multiple sectors.
