North Carolina Governor Roy Cooper recently vetoed a bill that aimed to prevent the state from implementing a Federal Reserve-issued central bank digital currency (CBDC). The decision came despite overwhelming support for the bill in both the House and Senate.
Governor’s Justification
In a statement on June 5, Cooper explained that House Bill 690 was “premature, vague, and reactionary.” He argued that North Carolina should wait for federal efforts to establish standards and safeguards for digital assets before taking any action at the state level. Cooper emphasized the importance of ensuring consumer, investor, and business protection through federal regulation.
Legislative Response
The bill received significant support, passing the House with a 109-4 vote and the Senate with a 39-5 vote. These numbers suggest that North Carolina legislators could potentially override Cooper’s veto with a three-fifths majority in both chambers.
Public and Industry Reactions
The veto sparked criticism from various quarters. Mitchell Askew, head analyst at Blockware Solutions and a North Carolina native, expressed disappointment. He accused Cooper of letting partisan politics influence his decision, noting that the bill’s support could benefit all residents of North Carolina.
“Governor Cooper’s veto does not represent the desires of North Carolinians,” Askew said. “It’s a shame he couldn’t put partisan politics aside to support a law beneficial to all residents.”
Dan Spuller, head of industry affairs at the Blockchain Association, echoed similar sentiments. He saw the veto as a missed opportunity to signal North Carolina’s strong opposition to a CBDC. Spuller emphasized the need for digital asset policy to remain in the hands of the American people, reflecting values of privacy, individual sovereignty, and free-market competitiveness.
Also Read: Bahamas to Mandate Bank Support for ‘Sand Dollar’ CBDC
Federal Perspective
Meanwhile, Federal Reserve Chair Jerome Powell remarked in a March Senate Banking Committee hearing that the U.S. is “nowhere near recommending or adopting a central bank digital currency in any form.” This federal stance underscores the premature nature of the proposed state-level ban, as cited by Governor Cooper.
Given the strong legislative support for the bill, an override of the governor’s veto remains a distinct possibility. Should this occur, it would underscore the state legislature’s commitment to opposing a CBDC despite the governor’s reservations.
