The House of Representatives of North Carolina has passed legislation to ban payments to the state using a central bank digital currency (CBDC).
North Carolina passes legislation against CBDC use
House Bill 690 was passed unanimously on May 3, with all 118 legislative body members supporting the proposal.
Originally called “No Cryptocurrency Payments to State,” the bill was introduced in early April and was later modified to focus on digital currencies issued by the United States Federal Reserve (Fed).
The latest version of the bill aims to prohibit individuals from using CBDCs to make payments to the state.
Furthermore, it prevents North Carolina from being used by the Federal Reserve as a possible testing ground for the CBDC pilot.
It proposed amending statutes to ensure “no State agency nor the General Court of Justice” takes payments using CBDCs or participates in federal testing of a digital dollar.
Since April, the bill remained in committee before going through readings and a full vote. North Carolina’s move follows a similar effort by Montana, which passed a bill last month to prevent using CBDCs as legal tender.
The North Carolina bill will now move to the Senate, where Governor Roy Cooper must sign it into law or veto it.
Meanwhile, the Board of Commissioners for North Carolina’s Buncombe County approved a one-year moratorium on May 2, allowing officials to study the impact of crypto mining on the county’s resources and infrastructure.
The 2024 US elections draw closer
As the 2024 US presidential election draws closer, the movement to ban CBDCs is gaining more political significance.
In March 2023, Florida Governor Ron DeSantis, who is widely speculated to run for the United States presidency, called for a ban on CBDCs. He cited concerns about the technology used to “police Americans and control their behavior.”
Governor DeSantis is not the only politician who opposes CBDCs.
Congressman Tom Emmer, a cryptocurrency supporter, warns that CBDCs could be weaponized as a political tool.
Lawmakers in various states are echoing these concerns. North Carolina is the latest to approve a bill that opposes the use of CBDCs.
As the debate over CBDCs rages on, it remains to be seen how the issue will be addressed in the lead-up to the 2024 presidential election.
