North Carolina's Bold Move

North Carolina passed a bill through the Senate to ban central bank digital currencies (CBDCs). The legislation, known as Bill 690, now sits on the Governor's desk awaiting approval. If signed into law, North Carolina will make a significant statement against the potential adoption of a CBDC in the United States.

Key Provisions of the Bill

The bill stipulates that the state can no longer involve itself in the Federal Reserve branch's testing of any future CBDC. It also prohibits North Carolina agencies and courts from accepting payments using CBDCs.

This move aligns with growing concerns among policymakers that a federally issued digital currency could undermine the US dollar and infringe on citizens' privacy.

Overwhelming Senate Support

According to the Carolina Journal, Bill 690 received a resounding 109-4 vote from the Senate on Wednesday. This is a substantial increase from Tuesday's 39-5 vote.

Sen. Brad Overcash emphasized that the legislation aims to dissuade the federal government from advancing a CBDC plan. He argued that such a plan would threaten the stability of the US dollar, one of the world's leading currencies.

"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," said Overcash.

A Broader Movement Against CBDCs

The sentiment against CBDCs is not isolated to North Carolina. Majority Whip Tom Emmer proposed the 'CBDC Anti-Surveillance State Act' in May to block the US central bank from continuing its efforts toward developing a digital dollar.

During a March hearing of the federal Senate Banking Committee, Fed Chair Jerome Powell stated that the US is "nowhere near" adopting CBDC in any form.

Florida Joins the Fray

North Carolina is not alone in its stance. Last year, the Florida legislature and Gov. Ron DeSantis were highly vocal against a CBDC. DeSantis even signed a bill banning the use of CBDCs in the state.

This growing resistance highlights the significant concerns among state lawmakers about the potential implications of a federally issued digital currency.

Conclusion

The passage of Bill 690 sends a strong message to the federal government: North Carolina needs to be more interested in adopting a CBDC.

According to Sen. Brad Overcash, the bill represents an important step in upholding the stability of the US financial sector. As the bill awaits the Governor's signature, all eyes will be on North Carolina to see if this bold move becomes law.