North Carolina Blocks CBDC with Veto Override

The North Carolina General Assembly has passed House Bill 690, effectively banning the state from participating in Federal Reserve tests of a central bank digital currency (CBDC). The Senate voted 27-17 to override Democrat Gov. Roy Cooper’s veto of the bill, which also prohibits the state from accepting CBDC payments.

Gov. Cooper had previously criticized the bill as “premature, vague, and reactionary,” arguing that North Carolina should wait for federal efforts to establish standards and safeguards for digital asset transactions before taking action.

Dan Spuller, head of industry affairs at the Blockchain Association, voiced support for the bill on social media, stating that Cooper missed an opportunity to signal North Carolina’s opposition to CBDCs.

This move follows the U.S. House’s passage of the CBDC Anti-Surveillance State Act in May, which aims to block the Federal Reserve from issuing CBDCs to individuals.

While the Federal Reserve has been studying the potential benefits and drawbacks of a CBDC, Chair Jerome Powell has indicated that any implementation would require congressional approval and be integrated into the existing banking system.

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