North Carolina lawmakers overwhelmingly supported the bill, and could still overrule the governor
North Carolina Governor Roy Cooper has vetoed a bill that would prevent the state from implementing a US Federal Reserve-issued central bank digital currency (CBDC). This decision comes despite the bill receiving overwhelming support in both the state’s House of Representatives and Senate.
House Bill 690, aimed at banning the state from adopting a CBDC, passed with a 109–4 vote in the House and a 39–5 vote in the Senate. However, Cooper explained in a statement on June 5 that he found the bill to be “premature, vague, and reactionary,” and, therefore, could not sign it into law.
Cooper’s veto has not been well-received by many, as it countered the nearly unanimous votes in favor of the bill. Given the strong legislative support, North Carolina legislators have the potential to override Cooper’s veto with a three-fifths majority in both chambers.
Critics argue that Cooper’s veto was politically motivated. Representative Julia Howard expressed disappointment, suggesting that Cooper was “unwilling to put partisan politics aside” to support legislation that could benefit all North Carolinians. Dan Spuller, head of industry affairs at the Blockchain Association, echoed this sentiment, stating that the veto represented a missed opportunity for North Carolina to take a firm stand against the implementation of a CBDC.
On the other hand, Federal Reserve Chair Jerome Powell has indicated that the US is not close to adopting a central bank digital currency. In a Senate Banking Committee hearing in March, Powell stated that the country was “nowhere near recommending or adopting a CBDC in any form.”
Despite Powell’s assurances, the debate over CBDCs remains a contentious issue. Proponents of the ban argue that a CBDC could lead to increased government surveillance and control over financial transactions. Opponents believe that such concerns are premature, given the current stage of CBDC development.
The strong legislative support for House Bill 690 reflects a growing unease about the potential implications of a CBDC. Many legislators and constituents are wary of the impact that a federally issued digital currency could have on privacy and financial autonomy.
As the situation unfolds, it remains to be seen whether North Carolina’s legislature will move to override Governor Cooper’s veto. If they do, it would mark a significant statement of opposition to CBDCs from the state. In the meantime, the debate underscores the broader national conversation about the future of digital currencies and the role of government in their regulation.
Governor Cooper’s veto has sparked a lively debate, highlighting the complex and often contentious nature of digital currency regulation. While the future of CBDCs in the US remains uncertain, the discussion in North Carolina serves as a microcosm of the larger issues at play as states and federal entities navigate the evolving landscape of digital finance.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
