Governor’s Veto Overruled: North Carolina Takes a Stand Against Federal CBDC

• North Carolina bans CBDC after the Senate overrides Governor’s veto, marking a state-level stand.
• 12 Democratic senators reversed their stance, but the bill still passed with a narrow majority.
• Federal Reserve research on CBDCs continues, but adoption remains distant without congressional approval.

The North Carolina General Assembly has passed a bill restricting the state’s adoption of the United States Federal Reserve-issued central bank digital currency (CBDC). This came after the state Senate successfully overruled Governor Roy Cooper’s veto.

Close Vote in the Senate Finalizes the Bill

On September 9, the Republican-led North Carolina Senate secured the 60% majority required to overturn Governor Cooper’s veto with a 27–17 vote in favor of House Bill 690. The bill had already passed in the House of Representatives with a 73–41 vote in early August, officially becoming law with the Senate’s decision.

Additionally, 12 Democratic senators who had earlier supported the bill changed their stance, aligning with the Governor’s veto, but the bill still passed.

Governor Cooper, a Democrat, vetoed House Bill 690 in July, raising concerns that it was premature, vague, and reactionary.

He argued that the federal government is already working on establishing standards and safeguards for digital assets, including CBDCs. Cooper suggested that North Carolina should wait for federal guidelines before taking any state-level steps to ensure that consumers, investors, and businesses are properly protected.

Read also: CBDC Debate: Freedom vs. Control, Experts Weigh In

Federal Developments and Broader Impact

At the federal level, the United States House of Representatives passed the CBDC Anti-Surveillance State Act in May, while Senator Ted Cruz introduced a similar bill in the Senate. 

Although the Federal Reserve is researching the potential for issuing a CBDC, Chair Jerome Powell stated there are no immediate plans to implement one.

Powell confirmed in July that the Fed is far from making any recommendations on a CBDC, emphasizing that any decision would require congressional approval.

After the Senate’s decision, Dan Spuller, head of industry affairs at the Blockchain Association, expressed disappointment, noting that the veto had missed an opportunity for North Carolina to show a united stance against adopting CBDCs.

North Carolina’s State Senate has officially overridden @RoyCooperNC’s veto of the widely popular Anti-#CBDC Bill (HB690), championed by @BradOvercash. Earlier this summer, @NCHouseSpeaker also overrode the veto on the House side, making HB690 officially law.

This bill should… pic.twitter.com/xRplzFnwxW

— Dan Spuller (@DanSpuller)
September 9, 2024

Spuller’s comments highlight the broader concerns within the industry regarding the potential effects of a state-level ban on CBDCs.

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