North Carolina Senate Passes Anti-CBDC Bill

The North Carolina Senate has enacted House Bill 690, overriding Governor Roy Cooper's veto to prohibit any state participation in Federal Reserve testing of a central bank digital currency (CBDC). The final vote was 27-17 in favor, reflecting a growing trend among U.S. states against CBDCs, similar to actions taken in Florida. Governor Cooper criticized the bill as 'premature, vague, and reactionary,' arguing that North Carolina should first observe how CBDCs operate before making legislative decisions. Proponents of the bill assert it protects state sovereignty and financial privacy, as it bans both the acceptance of CBDCs for state transactions and participation in federal pilot programs. The Federal Reserve has indicated that it will not issue a CBDC without congressional approval, and concerns about consumer protection have been raised by various stakeholders. This legislative move positions North Carolina among the forefront of states actively opposing federal digital currency initiatives.