Schmidt previously served as the club's vice president of scouting and has run the club's draft strategy since 2000.
"After discussions with the baseball department heads, we have come to the conclusion that Bill is the right person for interim GM," Rockies president Greg Feasel said in a statement. "Bill's experience and his relationships from top to bottom throughout our organization, including the players, coaches, and staff on the field, more than qualify him for this role."
Former GM Jeff Bridich resigned from the position one week ago.
Since 2000, the Rockies have made 20 first-round selections in the draft, not including supplemental or competitive balance picks. Thirteen of those selections have been in the top 10, including Troy Tulowitzki, David Dahl, Jon Gray, Kyle Freeland, Brendan Rodgers, and, most recently, Zac Veen.
Perhaps Schmidt's biggest draft successes, though, were selecting Trevor Story 45th in the 2011 MLB Draft and Nolan Arenado 59th overall in 2009. Bridich traded Arenado this past offseason to the St. Louis Cardinals along with cash for left-handed pitcher Austin Gomber and a package of prospects.