- Passing the CBDC Ban Bill
- Previous Attempts to Ban CBDCs
- Opinions and Comments
The North Carolina General Assembly has passed a bill prohibiting the implementation of a Federal Reserve-issued central bank digital currency (CBDC) within the state, following a Senate override of Governor Roy Cooper’s veto.
Passing the CBDC Ban Bill
The Republican-majority Senate voted 27-17 in favor of House Bill 690, surpassing the 60% threshold required to counter the governor’s veto. The newly passed bill prevents the state from accepting CBDCs as a new form of valid payment and participating in future CBDC pilot programs conducted by any Federal Reserve branch.
Previous Attempts to Ban CBDCs
Despite receiving overwhelming bipartisan support in June, Governor Cooper initially vetoed the legislation on July 5, with the House voting 109-4 and the Senate 39-5 in favor. However, the political landscape changed by the time of the Senate’s final vote, as 12 Democratic senators who initially backed the bill altered their stance and supported the governor’s veto.
Opinions and Comments
Sen. Brad Overcash, a member of the North Carolina State Senate, stated: 'It’s 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.' Governor Cooper mentioned that North Carolina should wait to see how CBDCs work before making a final decision, pointing out that the bill was premature, vague, and reactionary.
With the introduction of the CBDC ban bill, North Carolina joins Florida in adopting a ‘No CBDC for the State’ stance, reflecting a cautious approach towards the implementation of central bank digital currencies.
