On September 9th, the state’s Senate voted to override the governor’s veto, making the bill official.
This law stops any CBDCs from being used to pay for things in North Carolina and blocks the U.S. Federal Reserve from testing a digital dollar in the state.
Why Is North Carolina Saying “No Thanks” to CBDCs?
State Senator Brad Overcash, one of the people behind the bill, said the law is meant to send a message: North Carolina isn’t interested in using a federal digital dollar. According to Overcash, there are concerns that a CBDC could give the government too much power over people’s financial privacy. He told the Carolina Journal, “This is an opportunity for us to send the signal that North Carolina, the ninth largest state in the union, is not interested in a federal central bank digital currency.”
By passing this law, North Carolina is saying they want to protect the privacy and financial independence of their residents. The law aims to stop any plans for CBDCs before they even begin in the state.
🚨 LATEST: North Carolina Pushes Back Against CBDCs
The state passed a law banning CBDCs as a form of payment and blocking the Fed from testing a digital dollar within its borders. pic.twitter.com/IKS8Jrnx2t
— Cointelegraph (@Cointelegraph) September 13, 2024
Is the Ban Symbolic?
The big question is whether this new law will have any real effects. Right now, no major country has fully rolled out a CBDC. The United States is trailing behind other countries like China. Also, some are in the G7 when it comes to researching and developing a digital dollar. Because the U.S. isn’t close to launching a CBDC anytime soon. So, North Carolina’s new law may be more symbolic than practical—kind of like putting the cart before the horse.
Another issue is whether North Carolina has the legal power to make this kind of law. Since the U.S. government controls national currency, some experts wonder if a state can block the federal government from testing or accepting a CBDC. It’s possible that this could be challenged in court down the road, adding more fuel to the fire.
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