On September 9th, the state’s Senate voted to override the governor’s veto, making the bill official. This law stops any Central Bank Digital Currencies (CBDCs) from being used to pay for things in North Carolina and blocks the U.S. Federal Reserve from testing a digital dollar in the state.
Senate Overrides Governor's Veto
On September 9th, the state’s Senate voted to override the governor’s veto. This made the new law official, which bans the use of Central Bank Digital Currencies (CBDCs) for payments and blocks the testing of a digital dollar in North Carolina.
Why Is North Carolina Against CBDCs?
State Senator Brad Overcash, one of the people behind the bill, said the law is meant to send a message: North Carolina isn’t interested in using a federal digital dollar. According to Overcash, there are concerns that a CBDC could give the government too much power over people’s financial privacy. He told the Carolina Journal, "This is an opportunity for us to send the signal that North Carolina, the ninth largest state in the union, is not interested in a federal central bank digital currency."
Is the Ban Symbolic?
The big question is whether this new law will have any real effects. Right now, no major country has fully rolled out a CBDC, and the United States is lagging behind other countries like China in researching and developing a digital dollar. Furthermore, it is unclear whether North Carolina has the legal power to pass such a law, given that national currency control is a federal matter. This law could be challenged in court, adding more complications.
Thus, North Carolina aims to protect the privacy and financial independence of its residents by banning the use of central bank digital currencies within its borders.
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