North Carolina House Seeks to Ban Central Bank Digital Currency
Date: 2024-08-06 Author: Gabriel Deangelo Categories: IN WORLD
The North Carolina House is re-considering a bill that would effectively ban all transactions with U.S. central bank digital currencies (CBDCs) in the state. The bill has been sent to the Senate Rules Committee for consideration. If the Senate upholds the measure, it would become law, bypassing the governor’s office.
The Governor’s Position
Governor Roy Cooper vetoed a bill to ban CBDCs last month that had passed unanimously in both houses of the General Assembly. Cooper said the bill was “premature, vague, and reactionary” in proposing to make a final decision on issues the Federal Reserve has not yet made up its mind about. The governor argued that such a law is unnecessary because the Federal Reserve has repeatedly stated that it does not intend to impose its CBDC policies on states.
The North Carolina House of Representatives has strongly supported the bill, and now its fate depends on the Senate of the General Assembly. If the Senate supports the decision of its colleagues in the lower chamber, the House of Representatives, the document will become law, despite the governor's veto.
Earlier, the US House of Representatives also passed a similar bill prohibiting the Federal Reserve from designing and testing CBDCs. This shows widespread support for such measures at the federal level, which may influence the decisions of individual states.
Impact and consequences
If the bill passes, it could set a significant precedent for other states considering similar restrictions on the use of CBDCs. North Carolina could become the first state to formally ban any transactions with a central bank digital currency, which would have far-reaching implications for the financial sector and the regulation of digital currencies in the United States.
The bill’s advancement reflects the intense debate surrounding the introduction and regulation of digital currencies in the United States. The North Carolina House’s decision could be an important step in shaping public policy on CBDCs and set the stage for further legislative initiatives at both the state and federal levels.
