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North Carolina Senate overrides veto to ban CBDC in the state

North Carolina Senate overrides veto to ban CBDC in the state

GrafaGrafa2024/09/10 04:15
By:Liezl Gambe

North Carolina’s General Assembly has passed a bill that prohibits the state from implementing a central bank digital currency (CBDC) issued by the Federal Reserve. 

The Senate managed to override Governor Roy Cooper's veto with a 27-17 vote on September 9, just reaching the 60% majority needed to enact House Bill 690 into law. 

The North Carolina House had already voted to overturn Governor Cooper’s veto in early August with a 73-41 vote. 

The newly passed bill prevents the state from accepting CBDCs as a form of payment and bars it from participating in future CBDC tests conducted by any Federal Reserve branch. 

This move highlights the state's resistance to federal digital currency initiatives. 

Governor Cooper, a Democrat, initially vetoed the bill on July 5, following strong support for it in both chambers earlier in June. 

However, the latest Senate vote to override his veto saw a shift in support, with 12 Democrats who initially backed the bill changing their stance to support the governor's veto. 

As a result, no Senate Democrats voted in favor of the bill in the final tally. 

Mitchell Askew, an analyst from Blockware Solutions, criticised the shift, suggesting it was driven by political considerations. 

“Twelve Democrats flipping their position to support the veto confirms my initial hypothesis that the veto was due to Cooper playing partisan politics,” he remarked. 

Dan Spuller, head of industry affairs at the Blockchain Association, stated that the governor's veto missed an opportunity for North Carolina to send a strong message against CBDCs. 

Although the Federal Reserve has explored the concept of CBDCs, Chair Jerome Powell stated in July that there were no immediate plans to move forward with a U.S.-issued CBDC. 

He reaffirmed this position during a Senate Banking Committee hearing in March, indicating that the U.S. is “nowhere near recommending or adopting a central bank digital currency in any form.” 

Despite such assurances, moves like North Carolina's CBDC ban reflect ongoing skepticism about digital currencies from both state and federal lawmakers. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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