The state follows Louisiana in ensuring that CBDCs aren’t welcome
The General Assembly in North Carolina approved a bill on Wednesday that limits the state government’s use and acceptance of a central bank digital currency (CBDC) issued by the Federal Reserve.
Following the Senate’s approval by a 39-5 vote, House Bill 690 passed the House by a 109-4 vote on June 26. The bill is now awaiting approval from Governor Roy Cooper.
If Cooper signs the bill, it will promptly prohibit state courts and agencies from receiving “payment using central bank digital currency.” Participation in CBDC tests “by any Federal Reserve branch” would also be prohibited.
House Bill 690 was passed just after Louisiana Governor Jeff Landry signed similar legislation banning the state from using or accepting CBDCs.
If Gov. Cooper decides to veto the North Carolina bill, lawmakers could easily override it, as more than three-fifths of legislators on both sides of the aisle have supported it. His office hasn’t indicated whether he plans to sign the bill.
Jerome Powell, Chairman of the Federal Reserve, stated in a March Senate Banking Committee hearing that the country was “nowhere near recommending or let alone adopting a central bank digital currency in any form.”
Last month, the US House passed legislation to ban the Fed from delivering a CBDC, which is currently awaiting a vote in the Senate.
A June 14 survey conducted by the Bank of International Settlements (BIS) discovered that 94% of central banks are researching CBDC, which it says has seen a “sharp uptick” in wholesale CBDC investigations.
According to the BIS, central banks would likely issue a wholesale CBDC instead of a retail CBDC within the next six years, adding that “many CBDC features are still undecided.”
