Jerome Powell

Chair

Reserve

The North Carolina General Assembly has passed a bill banning the state from implementing a United States Federal Reserve-issued central bank digital currency (CBDC), with the Senate overriding Governor Roy Cooper’s veto.&nbsp;
The Republican Party-led Senate approved House Bill 690 by a 27–17&nbsp;<a data-ct-non-breakable="null" href="https://www.ncleg.gov/Legislation/Votes/RollCallVoteTranscript/2023/S/659" rel="null" target="null" text="null" title="null">vote</a>&nbsp;on Sept. 9, narrowly surpassing the 60% majority needed to override a veto by Cooper — a Democrat — and pass it into law.
It comes after the North Carolina <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/north-carolina-bill-banning-us-cbdc-testing" rel="null" target="null" text="null" title="null">House of Representatives voted to overturn</a> Cooper’s veto in early August in a 73–41 vote.
<figure>
 <img alt="North Carolina Senate overrides governor veto, passes bill banning CBDC" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d983-dd93-7093-9cdb-8bcff2e34622">
 <figcaption style="text-align: center;">
 North Carolina Senate vote on House Bill 690 veto. Source: North Carolina General Assembly
 </figcaption>
</figure>
The bill forbids the state of North Carolina from accepting <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies" rel="null" target="null" text="null" title="null">CBDCs as a form of payment</a> and prohibits it from participating in future CBDC tests conducted “by any Federal Reserve branch.”
<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/north-carolina-governor-vetoes-cbdc-ban-bill" rel="null" target="null" text="null" title="null">Cooper’s July 5 veto</a> followed a lopsided<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/north-carolina-cbdc-ban-bill-heads-to-governor" rel="null" target="null" text="null" title="null"> 109–4 vote in the House</a> and a 39–5 vote in the Senate a month earlier.
The latest veto-busting Senate vote was much closer, with 12 Democrats who initially supported the bill flipping to support Cooper’s veto.
Not a single Senate Democrat voted to pass the bill this time.
Blockware Solutions head analyst Mitchell Askew told Cointelegraph it is “amazing” to see CBDCs officially banned in his native state, but he wasn’t pleased with how the Senate vote went:
<blockquote>
 “12 Democrats flipping their position to support the veto confirms my initial hypothesis that the veto was due to Cooper playing partisan politics.”
</blockquote>
In a Sept. 9 X post, Blockchain Association’s head of industry affairs, Dan Spuller, said Cooper’s veto effectively “blew an opportunity” to send a message to the Federal Reserve that North Carolina stands “united” against CBDCs. 
<figure>
 <img alt="North Carolina Senate overrides governor veto, passes bill banning CBDC" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191d985-355a-73b1-bb11-bffcada719c6">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/DanSpuller/status/1833188075809497118" rel="null" target="null" text="null" title="https://x.com/DanSpuller/status/1833188075809497118">Dan Spuller</a>
 </figcaption>
</figure>
Cooper’s office did not immediately respond to a request for comment on the bill’s passing.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ignoring-quantum-threats-cbdc-design-is-reckless" rel="null" target="null" text="null" title="null">Ignoring quantum threats in CBDC design is reckless</a>
While CBDCs have been researched by the Federal Reserve, its Chair Jerome Powell <a data-ct-non-breakable="null" href="https://www.americanbanker.com/news/feds-powell-nothing-new-going-on-with-cbdc" rel="null" target="null" text="null" title="null">stated</a> on July 31 that “there’s really nothing new going on at all” with a US-issued CBDC.
At a March federal Senate Banking Committee&nbsp;hearing, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/federal-reserve-nowhere-near-launching-cbdc-jerome-powell" rel="" target="_self" text="null" title="https://cointelegraph.com/news/federal-reserve-nowhere-near-launching-cbdc-jerome-powell">he said the US was</a> “nowhere near recommending or let alone adopting a central bank digital currency in any form.”
Despite the Fed’s assurances, the US House <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/cbdc-anti-surveillance-state-act-passes-house" rel="null" target="null" text="null" title="null">passed the CBDC Anti-Surveillance State Act</a> in May. A companion bill has been <a data-ct-non-breakable="null" href="https://www.congress.gov/bill/118th-congress/senate-bill/3801/all-actions?overview=closed#tabs" rel="null" target="null" text="null" title="null">introduced</a> to the Senate by Senator Ted Cruz.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/digital-yuan-adoption-payments-regulation/" rel="null" target="null" text="null" title="null">How the digital yuan could change the world… for better or worse</a>

North Carolina Senate overrides governor veto, passes bill banning CBDC

Cointelegraph

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