North Carolina Governor Vetoes Bill to Ban Central Bank Digital Currency (CBDC)

North Carolina Governor Roy Cooper’s recent veto of Bill 690 has reignited debate over the introduction of Central Bank Digital Currency (CBDC) in the state.

The bill, which aimed to prohibit CBDC payments and pilot programs, had passed with overwhelming legislative support. However, Cooper’s decision highlights concerns over premature action and the need to observe federal safeguards for digital assets.

As the debate continues, the state’s legislature may still have the power to override the veto.

Overview of Bill 690 and its Provisions

On July 5, 2024, North Carolina Governor Roy Cooper announced his veto of Bill 690, which aimed to prohibit the introduction of Central Bank Digital Currency (CBDC) in the state.

Bill 690 sought to ban the implementation of CBDC within North Carolina. Key provisions included prohibiting “payments to the state using CBDC” and banning “CBDC pilot programs within North Carolina.”

CBDC has been met with concerns regarding potential privacy violations. The bill had received overwhelming support in both the House and the Senate, reflecting widespread legislative agreement on these issues.

However, Governor Cooper’s veto has brought this matter back into the spotlight.

Governor Cooper’s Reasoning for the Veto

Governor Cooper justified his veto by stating that “current standards and safety measures to protect digital asset users are being developed at the federal level.

We should observe how these measures function before taking action.” He described the bill as premature and emphasized the need for a more measured approach.

Efforts are being made 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.

This legislation is premature, vague and reactionary and proposes an end result on important monetary decisions that haven’t even been made yet. Instead of this bill, the legislature should have passed a budget to provide more funding for cybersecurity threats that actually exist now.

The veto has sparked significant criticism. Critics argue that “Governor Cooper’s veto does not reflect the will of North Carolina residents,” and accuse him of being influenced by partisan politics.

They also claim that the veto missed an opportunity to send a strong message against CBDC.

Despite the veto, Bill 690 had garnered substantial support, passing the House with a vote of 109-4 and the Senate with a vote of 39-5.

It is reported that the North Carolina legislature could easily override the veto with a three-fifths majority in both chambers.

CBDC is still in the experimental phase in many countries, and its formal introduction has yet to occur. With significant opposition from figures like Donald Trump, the debate over CBDC is expected to continue.