In the interim, North Carolina is also acknowledging the potential advantages of digital assets to maintain its position as a leader in innovation.
The North Carolina General Assembly passed House Bill 690, which effectively prohibits the state from participating in any future Central Bank Digital Currency (CBDC) testing conducted by the Federal Reserve. On September 9, the Senate voted 27-17 to override Governor Roy Cooper’s veto of the measure, indicating a firm stance on the issue of CBDC in the state.
It is important to note that a CBDC is a digital representation of a government-issued currency that is not linked to a physical commodity. The central bank issues and regulates it, similar to traditional fiat currency; however, it is exclusively available in digital form. The most recent bill is the result of ongoing discussions in the United States concerning the function of the digital currency in the financial system.
Governor Roy Cooper had already vetoed the measure in July, describing it as “premature, ambiguous, and reactionary.” He contended that the federal government was already enforcing standards and safeguards for CBDCs. In Cooper’s opinion, North Carolina should have awaited federal action before making any state-level decisions.
Nevertheless, the state legislature expressed its opposition. Dan Spuller, the director of industry affairs for the Blockchain Association, conveyed his disappointment with Cooper’s veto. He faulted the governor for failing to communicate the state’s unanimity in its opposition to CBDC.
Spuller further stated that the passage of House Bill 690 suggests that any future CBDC development will priorities privacy and free market competitiveness.
The US House of Representatives passed the CBDC Anti-Surveillance State Act earlier this year, a Republican-led initiative that aims to prevent the Federal Reserve from issuing a CBDC to individual citizens.
In the interim, North Carolina is also acknowledging the potential advantages of digital assets to maintain its position as a leader in innovation. The General Assembly of the state enacted a measure in the lower house last year that directed the Department of State Treasurer to assess the feasibility of the state holding Bitcoin.
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