North Carolina Passes Anti-CBDC Bill, overriding Governor Roy Cooper’s Veto
The North Carolina General Assembly has passed a bill that prohibits the state from participating in Federal Reserve branch testing of central bank digital currencies (CBDCs) and bans payments using CBDCs. On Monday, the Senate voted 27-17 to override Democrat Governor Roy Cooper’s veto of House Bill 690.
Governor Cooper had vetoed the bill, arguing that it was “premature, vague, and reactionary.” According to his statement made in July, his proposal was for North Carolina to overlook the issue until, at the federal level, the rules, and standards are developed and to be ratified. He underscored his point by saying that the projects were being done to secure individuals, investors, and businesses which joined in digital assets.
Despite Cooper’s objections, Dan Spuller, head of industry affairs at the Blockchain Association, criticized the veto. Spuller argued that the bill “should have never been vetoed” and that Cooper missed an opportunity to send a strong message to the Federal Reserve about North Carolina’s stance against CBDCs.
Thus, the latest step in the legislation is the House of Representatives’ approval of the CBDC Anti-Surveillance State Act back in May. This newly drafted Republican bill has been taken on to discontinue the idea of the Fed’s issuing a CBDC directly to individual persons. FED has been exploring the possibilities of cryptocurrency possibilities and have released a report listing the pros and cons of such. Fed Chair Jerome Powell has made it clear that a central bank digital currency would be distributed only on approval of the Congress, and it will be released through the banking system and not directly to individuals.