North Carolina Senate Passes Bill Banning CBDCs

North Carolina’s General Assembly has overridden a gubernatorial veto to implement anti-CBDC legislation.

What’s the Scoop?

• No CBDC Participation: According to newly implemented legislation, the state of North Carolina is prohibited from accepting central bank digital currencies (CBDCs) for payments and cannot participate in Federal Reserve testing for CBDCs.
• Bill Becomes Law: North Carolina House Bill 690 was created in 2023. It passed both chambers of the General Assembly this June, but was vetoed just one week later by Democrat Governor Roy Cooper. The North Carolina House had already overridden Cooper’s veto on July 31, and Monday’s override from the Senate puts the bill into effect.
• Federal Efforts: In May, the Republican-led U.S. House of Representatives passed the CBDC Anti-Surveillance State Act along party lines, which intends to block the Federal Reserve from issuing CBDC assets to individuals.

Bankless Take:

Although some may argue that Governor Cooper is correct in his assessment that a CBDC ban is “premature, vague, and reactionary” at this time when actual Fed policy has yet to be enacted, Dan Spuller of the Blockchain Association contends that Cooper’s veto blew an opportunity to signal that North Carolina stands united against CBDCs.