In a significant legislative clash, North Carolina’s General Assembly has passed a bill barring the state from implementing a Federal Reserve-issued central bank digital currency (CBDC). The Republican-led Senate narrowly overturned Governor Roy Cooper’s veto on September 9, solidifying the bill into law with a 27-17 vote—just surpassing the 60% majority required.
The saga began earlier this year when the House of Representatives, with a substantial 109-4 vote, approved House Bill 690, which prohibits the state from accepting CBDCs and participating in Federal Reserve-led CBDC experiments. Governor Cooper’s veto in July aimed to halt the bill, but his efforts were thwarted by a slim margin in the Senate. The final vote saw a dramatic shift, with 12 Democrats who initially supported the bill now aligning with Cooper’s veto, resulting in a significant 27-17 outcome.
Mitchell Askew, Head Analyst at Blockware Solutions, expressed mixed feelings about the development. “It’s amazing to see CBDCs officially banned in my home state, but the tight Senate vote highlights the division within our government,” Askew remarked. Dan Spuller, Head of Industry Affairs at the Blockchain Association, echoed similar sentiments. He criticized Cooper’s veto as a missed opportunity to present a united front against CBDCs, emphasizing that the veto undermined North Carolina’s stance against federal digital currency initiatives.
Governor Cooper’s office has yet to respond to requests for comment on the bill’s passage. This legislative battle occurs against a backdrop of ongoing CBDC research by the Federal Reserve. Despite assurances from Fed Chair Jerome Powell that the U.S. is “nowhere near” adopting a CBDC, legislative action continues. In May, the U.S. House passed the CBDC Anti-Surveillance State Act, with Senator Ted Cruz introducing a companion bill in the Senate.
The North Carolina legislature’s decisive move marks a pivotal moment in the broader debate over the future of digital currencies and state versus federal authority in financial matters. As the Federal Reserve continues its exploration of CBDCs, North Carolina’s bold stance highlights the growing friction between state legislators and federal monetary policy.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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