By
Temitope Olatunji
June 27th, 2024
Senator Brad Overcash, R-Gaston, said that the bill aims to discourage the US federal government from pursuing a plan that could jeopardize one of America’s most vital assets: the US dollar.
On Wednesday, June 26, the North Carolina General Assembly passed a bill that restricts the state government from either issuing or accepting a central bank digital currency (CBDC) issued by the Federal Reserve.
After the state House passed the bill with a 109-4 vote yesterday, House Bill 690 will now proceed to Governor Roy Cooper for approval. If the governor decides to sign the bill into law, it will instantly bar the state agencies and courts from accepting “payment using central bank digital currency”. Furthermore, the state agencies also won’t be able to participate in CBDC tests “by any Federal Reserve branch”.
Earlier this week, Louisiana Governor Jeff Landry also signed a similar billing banning the state government from either issuing or accepting a CBDC. Moreover, the bill introduced by Louisiana also includes a provision in order to ensure the right to self-custody of digital assets.
Senator Brad Overcash, R-Gaston, said that the bill aims to discourage the US federal government from pursuing a plan that could jeopardize one of America’s most vital assets: the US dollar. Expecting unanimous support in both chambers, Overcash believes North Carolina’s action sends a strong message to the federal government that the nation’s ninth-largest state opposes a CBDC.
The widespread support for the North Carolina bill indicates that if Governor Cooper decides to veto it, the veto could easily be overridden, as over three-fifths of lawmakers in both chambers back the legislation.
Chorus Against US CBDC Grows
Last month, Congressman Tom Emmer also voiced a strong opposition to having a US CBDC stating that it could affect American values and citizens’ right to privacy. He also lashed out at the Biden administration stating that CBDC was part of their surveillance plan.
On the other hand, former US President Donald Trump has also vowed to not allow the CBDC project to proceed further if elected to power. Trump said that CBDCs “would be a dangerous threat to freedom”. On the other hand, Trump supported Bitcoin mining activities stating that it would be crucial in countering the rise of CBDCs.
During a federal Senate Banking Committee hearing in March this year, Fed Chair Jerome Powell that the US was “nowhere near recommending or let alone adopting a central bank digital currency in any form”. In comparison to other economies like China, the US has made little progress towards its CBDC Digital Dollar.