North Carolina Governor Roy Cooper has vetoed legislation that aimed to prohibit the state from implementing a Federal Reserve-issued central bank digital currency, despite overwhelming support from both the House and Senate. The bill, known as House Bill 690, received a decisive 109-4 vote in the House and a 39-5 vote in the Senate in late June.
In a statement on June 5th, Governor Cooper justified his veto by describing the bill as premature, vague, and reactionary, stating that it lacked the necessary clarity and foresight required for such a significant legislative decision.
Despite the strong bipartisan backing the bill received, Governor Cooper’s veto has sparked criticism. Mitchell Askew, a native of North Carolina and head analyst at Blockware Solutions, expressed disappointment, arguing that Cooper’s decision did not align with the desires of the state’s residents. He criticized the governor for allowing partisan considerations to influence what he believed could have been a beneficial law for all North Carolinians.
Similarly, Dan Spuller, head of industry affairs at the Blockchain Association, viewed the veto as a missed opportunity to demonstrate North Carolina’s stance against a central bank digital currency. Spuller emphasized that the veto could have sent a clear message opposing the implementation of such a currency in the state.
However, Federal Reserve Chair Jerome Powell indicated during a Senate Banking Committee hearing in March that the United States was far from endorsing or adopting any form of central bank digital currency, highlighting ongoing concerns and discussions surrounding the issue.
The vetoed legislation reflects ongoing debates about the future of digital currencies and their implications for state and federal policies, underscoring divergent viewpoints on how best to regulate and integrate these technologies into the financial landscape.