NC Governor Vetoes Central Bank Digital Currency Prohibition Bill

North Carolina Governor Roy Cooper has vetoed House Bill 690 (HB 690), which sought to prohibit the state from using or participating in the testing of central bank digital currencies (CBDCs) conducted by the Federal Reserve, according to reports.

The bill, titled “An act to prohibit payments to the state using central bank digital currency or participation by the state in Federal Reserve’s testing of central bank digital currency,” was vetoed on grounds of being premature and non-specific in its approach to evolving digital currency standards.

Governor Cooper emphasized that the bill was reactive and not adequately informed, highlighting the ongoing efforts at the federal level to establish consumer protections and operational standards for digital currencies.

He argued that North Carolina should allow time for these federal initiatives to develop fully before enacting state-level prohibitions.

The governor also pointed out the bill’s lack of attention to pressing issues such as cybersecurity, urging the legislature to prioritize funding for this area instead.

Dan Spuller, Head of Industry Affairs at the Blockchain Association, expressed disappointment with the governor’s decision to veto the bill.

Spuller noted that HB 690 had garnered broad bipartisan support, passing unanimously in the North Carolina House last summer and decisively in the Senate just last week.

He criticized the veto as a missed opportunity for North Carolina to assert its stance on the development of a federal CBDC.

According to Spuller, the veto undermines the state’s potential to influence the Federal Reserve’s approach to digital currencies, a key area of emerging financial technology.

He argued that the governance of digital assets should reflect core American values such as privacy, individual sovereignty, and competitive free markets.

Spuller called for an override of the veto, underscoring the importance of state involvement in national discussions about the future of digital currency regulation.

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