South Carolina Governor Henry McMaster signed Senate Bill 163 into law this week, making the state the latest to restrict central bank digital currencies and shield Bitcoin mining from local zoning pushback. The law, which takes effect immediately, bars state agencies from accepting or processing payments via CBDCs. It also prevents local governments from imposing discriminatory zoning or licensing requirements on cryptocurrency mining operations.
CBDC restrictions
The bill’s central bank digital currency provision blocks any state agency — from the Department of Revenue to the DMV — from using a CBDC as a payment method. Supporters argued that CBDCs could give government too much oversight over private transactions. The measure doesn’t ban private stablecoins or other digital currencies used for state services, only the official digital dollar or any similar sovereign digital currency.
Bitcoin mining protections
Separately, the law sets a floor for local rules on Bitcoin mining. Municipalities can’t single out mining operations with stricter zoning or licensing than they apply to other data centers or industrial uses. That’s a direct response to a handful of counties that had tried to ban or heavily restrict mining under noise or power-use ordinances. Industry groups praised the move, saying it provides the regulatory certainty miners need to invest in the state’s energy grid.
The timing matters. South Carolina has seen a surge in mining operations drawn by cheap nuclear and hydroelectric power. Local conflicts had been on the rise, with residents in some rural areas complaining about noise and energy consumption. The new law doesn’t eliminate all local oversight, but it requires that any restrictions be applied evenly — a miner can’t be singled out for special rules.
With the signature, South Carolina joins a handful of states that have passed similar twin bills this year, limiting government CBDC adoption while explicitly protecting mining from hostile local ordinances. The law is now in effect; the next test will be how local governments adjust their zoning codes to comply.
