North Carolina Senate Overrides Governor's Veto to Ban Fed CBDC

In Brief:

North Carolina's Senate overrode Governor Roy Cooper's veto to pass a bill banning the implementation of a Federal Reserve-issued CBDC in the state.

The Senate's 27-17 vote followed a House vote to overturn the veto, with 12 Democrats switching their support to back the veto.

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North Carolina Senate Overrides Governor's Veto to Ban Fed CBDC

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North Carolina's General Assembly has successfully passed a bill prohibiting the state from adopting a United States Federal Reserve-issued central bank digital currency (CBDC). The Senate, led by Republicans, overrode Governor Roy Cooper's veto with a 27-17 vote on September 9, surpassing the required 60% majority to enact House Bill 690 into law.

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Details of the Senate Vote

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The bill prevents North Carolina from accepting CBDCs as payment and participating in any Federal Reserve branch's future CBDC tests. Governor Cooper's veto on July 5 followed overwhelming support in both legislative chambers, with a 109-4 vote in the House and a 39-5 vote in the Senate earlier.

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In the latest Senate vote, 12 Democrats who initially supported the bill switched to back Cooper's veto, resulting in no Democrat votes in favor of the bill this round. Mitchell Askew of Blockware Solutions expressed disappointment over the partisan shift, suggesting the veto was politically motivated.

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Industry Reactions and Federal Context

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Dan Spuller from the Blockchain Association criticized Cooper's veto, suggesting it missed an opportunity to demonstrate North Carolina's unified stance against CBDCs. Governor Cooper's office did not immediately comment on the bill's passage.

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Despite ongoing research by the Federal Reserve, Chair Jerome Powell stated in July that no new developments were occurring regarding a US-issued CBDC. Meanwhile, the US House passed the CBDC Anti-Surveillance State Act in May, with a companion bill introduced in the Senate by Ted Cruz.

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