North Carolina Governor Roy Cooper Vetoes Bill Opposing Federal Reserve-Backed Digital Dollar

• North Carolina Governor Roy Cooper recently vetoed legislation aimed at opposing the use of a Federal Reserve-backed digital currency within the state.
• The bill, identified as “No Central Bank Digital Currency Payments to State” (HB 690), was considered by Governor Cooper to be premature and lacking detailed provisions.
• Despite the veto, the bill had previously garnered unanimous support from North Carolina’s House of Representatives and significant backing in the Senate.

North Carolina Governor Roy Cooper vetoes legislation opposing Federal Reserve-backed digital currency, citing premature decision-making and vague provisions.

Governor Cooper’s Veto Sparks Debate on State’s Approach to Digital Currency

Governor Roy Cooper’s recent decision to veto HB 690 has triggered considerable debate regarding North Carolina’s stance on digital currency. Cooper, a Democrat, emphasized that it is premature to conclude whether the state should ban the use of a central bank digital currency (CBDC) without fully understanding its implications. He suggested that more time is needed to observe ongoing federal efforts aimed at establishing comprehensive standards and consumer protections.

The Implications of HB 690

The proposed legislation, HB 690, sought to restrict state agencies and courts from using or experimenting with a digital dollar, potentially limiting North Carolina’s participation in any future CBDC pilot programs. However, Governor Cooper criticized the bill as reactionary and lacking in specificity. He urged policymakers to focus on existing cybersecurity threats and fund initiatives that address these current issues.

Legislative Support and Future Outlook

Despite Governor Cooper’s veto, HB 690 had previously received overwhelming bipartisan support. The bill passed the North Carolina House of Representatives with a unanimous 118-0 vote and was later endorsed by the Senate. Moving forward, the state’s legislative bodies may need to revisit the issue with more detailed provisions and a broader understanding of digital currency’s potential benefits and risks.

Conclusion

Governor Roy Cooper’s veto of HB 690 brings to light the complexities and uncertainties surrounding the adoption of central bank digital currencies. While the bill was well-supported within the state’s legislature, Cooper’s emphasis on waiting for federal guidelines and comprehensive consumer protections suggests a cautious approach moving forward. For North Carolina, the focus may shift towards addressing known cybersecurity threats while keeping an eye on the evolving landscape of digital currencies.