In a key shift, North Carolina’s Senate passed a law stopping any state role in testing digital money by the central bank. This decision was made after overturning a veto by Governor Roy Cooper on Monday.
Immediate Legislative Impact
The new law stops any state agency from using digital currencies from the central bank for payments and blocks any tests involving such currencies. This bold move puts North Carolina in the front line of a national debate about the role and safety of digital money.
Political Reactions and Implications
Governor Cooper had vetoed the bill, calling it too soon and unclear. He wanted the state to wait and see how federal standards for handling digital money transactions would take shape. Despite his concerns, the Senate’s decision to pass the bill with a 27-17 vote shows a strong push to take control of the state’s financial actions related to digital money.
Industry Perspective
After the bill passed, Dan Spuller of the Blockchain Association supported the decision. On X, he said the Governor missed a chance to show strong disagreement with the Federal Reserve about digital money.
Broader National Context
North Carolina’s law matches a trend where other states are also deciding their stance on federal financial technologies. Earlier, the U.S. House said no to the central bank issuing its own digital money through the CBDC Anti-Surveillance State Act. This shows the worry about privacy and too much control over money by one group.
Looking Ahead
With ongoing discussions about digital currencies, North Carolina’s early decision to ban testing might lead other states to do the same. The Federal Reserve has said any decision to start using digital money would need approval from Congress and would involve banks to keep the process clear and fair.
How Is Cryptocurrency Shaping the 2024 US Elections?North Carolina’s new law could change how other states and the federal government handle digital money. This decision sets a model for state control over new financial technologies. As digital money becomes more common, how states and the federal government work together will shape the future of these technologies in the U.S.
The US presidential candidates Robert F. Kennedy Jr. and Donald Trump have both expressed their disapproval of creating a central bank digital currency (CBDC) in the United States. However, both candidates have expressed their support for blockchain technology.
