The North Carolina General Assembly has approved a bill that prohibits the federal government from implementing a central bank digital currency in the state. Despite Democrat Governor Roy Cooper’s veto, the Senate voted 27-17 to override it with a three-fifths supermajority. The bill, known as House Bill 690, received enough support from Republican legislators, even though some Democrats who originally supported it changed their stance.
Senator Brad Overcash emphasized that the bill sends a signal to the federal government that North Carolina is not interested in a central bank digital currency. The legislation prevents the state from accepting payments in a CBDC and participating in any Federal Reserve testing of such currency.
The Federal Reserve had previously initiated discussions on the US dollar in a digital era, leading to the introduction of CBDCs. While all Republican senators backed the bill, Democrats who previously supported it did not vote in favor this time. Overcash criticized the Democrats for seemingly following Governor Cooper’s lead in opposing the bill.
Despite overwhelming bipartisan support when the bill was first passed in June, the House and Senate experienced a major change in opinion after Governor Cooper’s veto. The bill is now law, and North Carolina is legally bound to stay clear of any Federal Reserve-sponsored digital currency programs.
The final approval of the bill marks a significant stance against the potential implementation of a central bank digital currency in North Carolina.
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