North Carolina Enacts Anti-CBDC Legislation After Veto Override

North Carolina’s General Assembly has successfully overridden Governor Roy Cooper’s veto to pass legislation prohibiting the use of central bank digital currencies (CBDCs) in the state.

The new law bars North Carolina from accepting CBDCs as payment and from participating in any Federal Reserve testing of such digital currencies.

House Bill 690, introduced in 2023, passed both chambers of the General Assembly in June but was vetoed by Governor Cooper, who labeled the bill “premature, vague, and reactionary.”

The North Carolina House overrode the veto on July 31, with the Senate following suit on Monday, officially enacting the bill.

While some argue that the legislation jumps the gun given that Federal Reserve policy on CBDCs is still in development, others suggests that Cooper missed an opportunity to unite North Carolina in opposition to CBDCs by vetoing the bill.