North Carolina Governor Roy Cooper has vetoed a bill that aimed to prevent the state from adopting a central bank digital currency (CBDC) issued by the US Federal Reserve, despite overwhelming support from the state’s House of Representatives and Senate. The bill, known as House Bill 690, garnered a decisive 109–4 vote in the House and a 39–5 vote in the Senate before reaching Cooper’s desk.
In a statement released on June 5th, Cooper justified his veto by criticizing the bill as premature, vague, and reactionary, asserting that it lacked the necessary clarity and foresight to be enacted into law.
Given the substantial legislative support behind the bill, North Carolina lawmakers have the option to override Cooper’s veto with a three-fifths majority vote in both chambers. However, Cooper’s decision has already sparked significant controversy and dissent.
Mitchell Askew, a North Carolina native and head analyst at Blockware Solutions, expressed disappointment in Cooper’s veto, arguing that it disregarded the desires of the state’s residents and accusing the governor of prioritizing political considerations over potential benefits to the community.
Similarly, Dan Spuller, head of industry affairs at the Blockchain Association, viewed Cooper’s veto as a missed opportunity to convey strong opposition to a CBDC implementation in North Carolina.
Federal Reserve Chair Jerome Powell had previously indicated in a Senate Banking Committee hearing in March that the US was not close to recommending or adopting any form of central bank digital currency, highlighting ongoing uncertainties and concerns regarding CBDCs.
Despite the setback in North Carolina, the debate surrounding CBDCs continues to evolve, with global implications and potential ramifications explored in publications such as “How the digital yuan could change the world… for better or worse.”