North Carolina Governor Roy Cooper recently made headlines by vetoing a bill that would have banned the state from accepting payments in central bank digital currency (CBDC) issued by the U.S. Federal Reserve. The bill, known as House Bill No. 690, would have also prohibited the state from participating in any CBDC testing conducted by the Federal Reserve.
Cooper defended his decision to veto the bill, stating that it was premature and reactionary. He emphasized the importance of waiting to see how CBDCs function before making any final decisions. Cooper also criticized the bill for lacking clarity and for attempting to regulate important monetary decisions that have not yet been finalized.
In addition to his concerns about the bill itself, Cooper suggested that the legislature should focus on allocating more resources to address current cybersecurity threats rather than passing legislation related to CBDCs. His decision to veto the bill has sparked criticism from some lawmakers and industry experts who had supported the ban on CBDCs in North Carolina.
Dan Spuller, head of industry affairs at the Blockchain Association, expressed disappointment over the veto, stating that it was a missed opportunity to demonstrate opposition to the creation of a CBDC. Spuller emphasized the importance of allowing policies related to digital assets to reflect the values of privacy, individual sovereignty, and free market competitiveness.
Despite the veto, there is still a possibility that the bill could become law if legislators choose to override Cooper’s decision. With overwhelming support for the bill in both the House of Representatives and the Senate, a three-fifths majority in both chambers could overturn the governor’s veto.
It is interesting to note that North Carolina is not the only state considering legislation related to CBDCs. Florida recently passed a bill to ban the use of CBDCs within the state due to concerns about state-controlled surveillance. This trend suggests that the debate over the future of digital currencies is likely to continue at both the state and federal levels in the United States.