North Carolina Passes Bill Banning Central Bank Digital Currencies

Legislators in North Carolina have passed a bill that bars the state from recognizing central bank digital currencies (CBDCs) as a payment method or engaging in any related experiments conducted by the Federal Reserve.

As per the roll call transcript from the voting session, the North Carolina General Assembly approved the bill with a 27-17 vote on September 9. The affirmative votes exceeded the 60% threshold needed to overturn Governor Roy Cooper’s veto of the bill.

North Carolina Opposes CBDCs

In June, the General Assembly passed House Bill 690, which restricts the federal government from involvement with CBDCs, achieving strong bipartisan support. The House of Representatives endorsed the bill with a vote of 109-4, while the Senate followed with a 39-5 vote.

The governor, a Democrat, vetoed the bill, labeling it as “premature, vague, and reactionary.”

Countering The Governor’s Concerns

Even with the Democrats changing their stance, the Republican supermajorities in both the House and the Senate possessed enough votes to successfully carry out the override necessary by law. Therefore, the legislation preventing the North Carolina government from accepting payments in CBDCs and engaging in related tests has become law, notwithstanding the governor’s opposition.

After the bill’s passage, Republican Senator Brad Overcash expressed to the local media outlet, Carolina Journal, that this incident showcased North Carolina’s stance against a federal CBDC.

“It was just over two months ago that it passed through the Senate, 39 to five. I reminded my colleagues of that on the floor today, and I think it is pure politics. I think once they saw Roy Cooper veto the bill, they fell in line and just copied his lead, which is really unfortunate,” he stated.

North Carolina’s initiatives to oppose CBDCs are rooted in apprehensions that the government might employ digital assets to surveil residents’ financial activities and encroach upon their privacy.