Governor of North Carolina Vetoes House Bill 690 on CBDC Ban

The governor of North Carolina has decided to veto House Bill 690, a proposed law that aimed to prohibit the use of central bank digital currencies (CBDCs) for state payments and the participation of the state in the Federal Reserve's CBDC testing. Governor Roy Cooper expressed concerns about the bill, highlighting its premature nature and stressing the importance of allocating more resources towards cybersecurity.

Governor Cooper's Decision

Governor Roy Cooper, the leader of North Carolina, has chosen to veto House Bill 690 (HB 690), officially titled “An act to prohibit payments to the state using central bank digital currency or participation by the state in Federal Reserve’s testing of central bank digital currency.” In his veto message, Governor Cooper mentioned that there are ongoing efforts at the national level to establish standards and protections to safeguard consumers, investors, and businesses engaging in digital asset transactions. He suggested that North Carolina should observe these developments before taking any decisive actions.

Governor Cooper criticized the legislative proposal, describing it as premature, lacking clarity, and responding hastily to a situation where critical financial decisions have not yet been finalized. He recommended that instead of focusing on this bill, the legislature should prioritize passing a budget that addresses the current cybersecurity threats effectively. As a result, the governor made the decision to veto the bill.

Industry Reaction

Dan Spuller, the Head of Industry Affairs at the Blockchain Association, expressed disappointment regarding the veto of HB 690. He highlighted that the bill had broad support across party lines, having been approved unanimously in the NC House and Senate. Spuller raised concerns about the missed opportunity in sending a unified message to the Federal Reserve regarding North Carolina's stance on the creation of a CBDC. He urged for the veto to be overturned, emphasizing that decisions concerning digital assets should align with the values of privacy, individual autonomy, and market competitiveness as advocated by the American public.

Conclusion

The veto of House Bill 690 by Governor Roy Cooper has stirred discussions on the future of CBDCs in North Carolina. The decision underscores the governor's belief that a more cautious approach is warranted, given the evolving landscape of digital currency regulations at the national level. It also reflects the growing importance of cybersecurity considerations in the realm of financial transactions. As North Carolina navigates the complexities of CBDC policies, the debate on the role of states in shaping digital currency frameworks continues.

Share your thoughts on Governor Cooper's veto and the implications for CBDCs in North Carolina.