North Carolina Governor Vetoes Bill Banning Central Bank Digital Currencies

• Governor Cooper’s veto of NC House Bill 690 sparks controversy over CBDC usage in state payments.
• Bipartisan legislative support for banning CBDCs contrasts sharply with Cooper’s veto rationale.
• Federal Reserve’s cautious stance on CBDCs contrasts sharply with North Carolina’s legislative push.

North Carolina Governor Roy Cooper recently vetoed House Bill 690, which aimed to prohibit state payments using central bank digital currencies (CBDCs).

The bill, which saw overwhelming support in the House and Senate, proposed a ban on payments powered by digital currencies issued by central banks.

The bill, approved by almost all Republicans and Democrats, aimed to prevent state payments from using CBDCs. The House passed it with 109 votes for and only three against, while the Senate had 39 votes for and five against.

Governor Cooper defended his veto, describing the bill as premature, reactionary, and vague. He argued that the legislature should focus on improving cybersecurity measures instead of hastily banning a financial tool still in development. 

Cooper pointed out that the bill made decisions on key money matters that hadn’t been decided yet. He said the legislature should focus on passing a budget to improve cybersecurity, which was why he chose to veto the bill.

The governor’s decision to veto House Bill 690 has sparked backlash from various quarters. Many critics argue that his veto does not reflect the wishes of North Carolina residents.

Mitchell Askew, head analyst at Blockware Solutions and a North Carolina native, was very critical. He said Cooper’s veto was politically motivated and did not reflect the majority’s views. Askew remarked that Cooper vetoed the bill only because his opponent, Mark Robinson, supported it, and pointed out that Robinson is the pro-Bitcoin and pro-freedom candidate.

Dan Spuller, head of industry affairs at the Blockchain Association, also expressed disappointment with Cooper’s veto. He stressed that the governor’s decision sent the wrong message to the Federal Reserve, implying that North Carolina supports CBDCs.

Federal Reserve Chair Jerome Powell, speaking to the Senate Committee on Banking, Housing, and Urban Affairs on March 7th, said the U.S. is not close to having a fully working Central Bank Digital Currency (CBDC). Powell noted that such a currency would let the government track all transactions, like China’s digital yuan.

Powell also mentioned that if the Federal Reserve were to pursue a CBDC, it would be implemented through the banking sector. This position underscores the complexities and potential privacy concerns associated with adopting central bank digital currencies.