NC Governor Vetoes Bill Blocking Federal Digital Currency

North Carolina Governor Roy Cooper has vetoed a bill designed to stop the introduction of central bank digital currencies (CBDCs) in the state. Governor Cooper emphasized the importance of federal standards and protections before taking state-level action. However, the veto might still be overturned by the state's legislature.

The bill, passed unanimously by both legislative chambers, aimed to prevent any CBDC issued by the US Federal Reserve from being implemented in North Carolina.

Governor Cooper vetoed the bill, calling it vague and reactionary. He argued it did not address any immediate threats and urged lawmakers to focus on passing a budget to deal with existing cybersecurity issues. Cooper said, “Federal efforts are ongoing to ensure consumer, investor, and business protections in digital transactions, and North Carolina should wait for these measures before acting.”

Crypto supporters criticized the veto, calling CBDCs tools for government surveillance and economic control. The North Carolina Blockchain Initiative expressed disappointment, stating, “It’s unfortunate that Gov. Cooper vetoed this bipartisan bill.”

Experts note that the legislature might still override the veto with a two-thirds majority in both chambers. CBDCs are digital versions of government currency designed to speed up transactions. The Atlantic Council's CBDC tracker shows that most nations and currency unions, representing 98% of the global GDP, consider them.

In the US, CBDC opinions split along party lines. Democrats like Senator Elizabeth Warren support them, while Republicans like Senator Ted Cruz and Donald Trump oppose them. Trump has pledged to block CBDCs if re-elected.

The Federal Reserve remains cautious about CBDCs. Their website states no decision has been made about issuing a CBDC, noting that legal authorization would be needed. Governor Cooper’s veto highlights the complexities of regulating new technologies like CBDCs. While federal standards are being developed, states are trying to balance innovation with protection. North Carolina’s situation shows the tension between state and federal approaches.

In summary, Governor Cooper’s veto of the CBDC bill underscores the ongoing debate over digital currency regulation in the US. His decision reflects a cautious approach, prioritizing federal guidelines over rapid state action. The outcome of this legislative process will significantly impact the future of digital currencies in America.