North Carolina Senate Seeks Governor’s Approval for CBDC Ban Bill
The Senate in North Carolina has achieved a majority vote on a bill that aims to prohibit the use of central bank digital currencies (CBDCs) in the state. The legislation has now been sent to the Governor for approval.
If the bill becomes law, North Carolina will no longer be able to participate in any testing of future CBDCs conducted by the Federal Reserve branch. Additionally, the bill will prevent North Carolina agencies and courts from accepting any payments in CBDCs.
According to the Carolina Journal, Bill 690 received a vote of 109-4 in the Senate, an increase from the previous vote of 39-5. Senator Brad Overcash explained that the legislation is intended to discourage the federal government from pursuing its CBDC plans, which he believes could pose a threat to the US dollar, one of the world’s main currencies.
Senator Overcash emphasized that the bill sends a strong message to the government that North Carolina is not interested in adopting a CBDC. He stated, “This would bar our state agencies or courts from accepting a central bank digital currency, and it would also bar them from participating in a pilot project if one were to be initiated by any of the Federal Reserve Banks.”
Senator Overcash believes that this is an important step towards maintaining the stability of the US financial sector.
This move by the North Carolina Senate aligns with the stance of other US policymakers who are against the development of a federally-issued CBDC. In May, Majority Whip Tom Emmer proposed the “CBDC Anti-Surveillance State Act” to prevent the US central bank from pursuing the development of a digital dollar, citing concerns about government control.
During a Senate Banking Committee hearing in March, Federal Reserve Chair Jerome Powell stated that the US is currently far from adopting a CBDC in any form.
In addition to North Carolina, the Florida legislature and Governor Ron DeSantis have also expressed strong opposition to the use of CBDCs. Last year, Governor DeSantis signed a bill that banned CBDCs in the state.
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