North Carolina's CBDC Ban Bill Heads to Governor for Approval

Legislation prohibiting the use of Federal Reserve-issued digital currencies awaits the governor's signature.
North Carolina's CBDC Ban Bill Heads to Governor for Approval

North Carolina's General Assembly has passed a bill prohibiting the state's government from using or accepting central bank digital currencies (CBDCs) issued by the Federal Reserve. The bill, known as House Bill 690, now heads to Governor Roy Cooper's desk for approval. If signed into law, it would prevent state agencies and courts from accepting CBDC payments and participating in any Federal Reserve CBDC tests.

This legislation follows a similar bill signed into law by Louisiana Governor Jeff Landry, reflecting growing state-level resistance to CBDCs. The North Carolina bill received overwhelming support, passing the House with a 109-4 vote and the Senate with a 39-5 vote, indicating that a potential veto by Governor Cooper could be easily overridden.

Despite Federal Reserve Chair Jerome Powell's comments earlier this year that the U.S. is not close to adopting a CBDC, the topic remains contentious. A recent poll by the Bank for International Settlements found that 94% of surveyed central banks are exploring CBDCs, with a sharp increase in related experiments and pilots.

The debate over CBDCs continues as states like North Carolina and Louisiana take steps to limit their potential impact, highlighting the tension between federal initiatives and state-level autonomy in the evolving digital currency landscape.

Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.

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