North Carolina governor vetoes bill to prohibit CBDCs in state

North Carolina governor vetoes bill to prohibit CBDCs in state
Regulation
CBDCs have drawn opposition in the US at the state and national levels. Credit: Shutterstock / Shutterstock AI Generator
  • Bill to ban CBDCs was passed overwhelmingly in both houses.
  • Governor says bill is premature, North Carolina should bide its time.
  • CBDCs have drawn opposition in US House of Representatives as well.

Democratic Governor Roy Cooper of North Carolina vetoed a bill that sought to prohibit the state from implementing any central bank digital currency (CBDC) issued by the US Federal Reserve.

Both chambers of the North Carolina General Assembly had supported the bill, with a 109-4 majority in the House and 39-5 in the Senate. The Crypto Times first reported the story.

Still, along with his veto of the bill, Cooper said in a statement: “This legislation is premature, vague and reactionary and proposes an end result on important monetary decisions that haven’t even been made yet.”

He added that efforts were ongoing “at the federal level to ensure standards and safeguards are in place to protect consumers, investors and businesses that may want to make monetary transactions in digital assets and North Carolina should wait to see how they work before taking action.”

Dan Spuller, senior director of industry affairs at the Blockchain Association in Washington DC, urged the lawmakers to override the governor’s veto.

“Digital assets policy must remain in the hands of the American people, ensuring that any development of digital currency reflects our values of privacy, individual sovereignty, and free market competitiveness,” Spuller said in a post on X.

On the national level, the US House of Representatives voted 216-192 in May to prohibit creation of a CBDC without explicit authorisation from Congress, DL News reported. Only three Democrats voted for the bill.

The pro-crypto, predominantly Republican crowd warned that CBDCs could enhance government surveillance.

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The bill, dubbed the CBDC Anti-Surveillance State Act, was sponsored by Tom Emmer, a Republican from Minnesota and one of the crypto industry’s biggest congressional allies.

Three countries have already launched CBDCs, according to the Atlantic Council think-tank: Nigeria, Jamaica, and the Bahamas. Another 36 countries are currently piloting CBDC projects.