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North Carolina Governor Roy Cooper has vetoed a bill that would have prohibited the state from implementing a central bank digital currency (CBDC) issued by the US Federal Reserve. This decision comes despite overwhelming support for the bill in the state’s House of Representatives and Senate.
Governor Cooper explained his veto in a statement on June 5, citing concerns that House Bill 690 was “premature, vague, and reactionary.” He emphasized the importance of waiting for federal efforts to establish standards and safeguards for digital assets before taking action at the state level.
“Efforts are being made at the federal level to ensure standards and safeguards are in place to protect consumers, investors, and businesses using digital assets. North Carolina should wait to see how they work before taking action,” Cooper stated.
The bill had passed with a 109–4 vote in the House and a 39–5 vote in the Senate in late June. Given these near-unanimous votes, North Carolina legislators could potentially override Cooper’s veto with a three-fifths majority in both chambers.
Cooper’s veto has sparked criticism. Mitchell Askew, head analyst at Blockware Solutions and a North Carolina native, said that the veto did not reflect the desires of North Carolinians. Askew accused Cooper of being influenced by partisan politics, noting that the governor’s opponent, Mark Robinson, supports the bill.
Dan Spuller, head of industry affairs at the Blockchain Association, also criticized the veto, calling it a missed opportunity to clearly oppose a CBDC. “Digital asset policy must remain in the hands of the American people, ensuring that any development of digital currency reflects our values of privacy, individual sovereignty, and free market competitiveness,” Spuller said.
Despite these concerns, Federal Reserve Chair Jerome Powell stated at a Senate Banking Committee hearing in March that the US was “nowhere near recommending or let alone adopting a central bank digital currency in any form.” This indicates that the debate over CBDCs in the US is still in its early stages.
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