Governor Vetoes North Carolina Bill Prohibiting CBDCs

North Carolina Governor Roy Cooper has rejected a bill that would have prohibited the state from moving forward with a central bank digital currency (CBDC) issued by the US Federal Reserve, despite the bill garnering overwhelming support in both the state’s House of Representatives and Senate.
Critics have accused Cooper of making a decision based on political motives. In a statement released on June 5, Cooper described House Bill 690 as premature, vague, and reactionary, citing these reasons for his veto.
The veto from Cooper came after the bill received a strong 109-4 vote in the House and a 39-5 vote in the Senate towards the end of June. With such significant support, North Carolina lawmakers have the potential to overturn Cooper’s veto with a three-fifths majority in both legislative chambers.
Reactions to Cooper’s veto were largely negative. Mitchell Askew, a native of North Carolina and head analyst at Blockware Solutions, expressed disappointment, stating that the governor’s decision did not align with the wishes of the state’s residents. Askew criticized Cooper for prioritizing party politics over supporting a measure that could benefit all North Carolinians.
Similarly, Dan Spuller, the head of industry affairs at the Blockchain Association, viewed Cooper’s veto as a missed opportunity to convey a strong stance against a CBDC by North Carolina.
Federal Reserve Chair Jerome Powell had previously indicated during a Senate Banking Committee hearing in March that the US was not close to recommending or adopting a central bank digital currency in any capacity.
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