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North Carolina’s CBDC ban bill heads to governor’s desk

News Feed - 2024-06-27 10:06:29

Jesse Coghlan7 hours agoNorth Carolina’s CBDC ban bill heads to governor’s deskNorth Carolina Governor Roy Cooper will now either sign or veto the law that bars the state’s government from accepting a Federal Reserve CBDC, potentially joining Louisiana.1129 Total views20 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksNorth Carolina’s General Assembly on Wednesday passed a bill restricting the state’s government from using and accepting a Federal Reserve-issued central bank digital currency (CBDC).


House Bill 690 now heads to Governor Roy Cooper for approval after the state’s House passed the bill a 109-4 vote on June 26, a day after the Senate passed the bill in a 39-5 vote.


If Cooper signs the bill into law, it would immediately bar the state’s agencies and courts from accepting “payment using central bank digital currency.”


It would also ban them from participating in CBDC tests “by any Federal Reserve branch.”Highlighted excerpt of North Carolina’s H.B. 690. Source: North Carolina General Assembly


The bill’s passing comes the same week Louisiana Governor Jeff Landry signed a similar bill that banned the state’s government from accepting or participating in a CBDC.


Louisiana’s bill also included a provision that ensured a right to self-custody crypto.


The North Carolina bill’s wide support means if Cooper decides to veto, it could easily be overridden as it has support from over three-fifths of lawmakers in both chambers.


Cooper’s office did not immediately respond to a request for comment on his plan for the bill.


Federal Reserve Chair Jerome Powell said at a federal Senate Banking Committee hearing in March that the U.S. was “nowhere near recommending or let alone adopting a central bank digital currency in any form.”


Related:CBDC privacy concerns and ‘lack of purpose’ stall progress: 4 out of 167 live


Despite that, the U.S. House passed a bill last month to ban the Fed from offering a CBDC, which now heads to the Senate.


A June 14 Bank for International Settlements (BIS) poll found 94% of surveyed central banks are exploring a CBDC, with the organization saying it’d seen a “sharp uptick” in wholesale CBDC experiments and pilots.


The BIS said that in the next six years, a central bank is more likely to issue a wholesale CBDC than a retail CBDC — the latter being for everyday users.


However, it added that “many CBDC features are still undecided.”


Magazine:Unstablecoins — Depegging, bank runs and other risks loom# Federal Reserve# North Carolina# CBDC# RegulationAdd reaction