The North Carolina House of Representatives passed it unanimously House of Representatives 690, which prohibits the use of central bank digital currencies (CBDC) for payments to the state or any participation by the state in the Federal Reserve branch test of central bank digital currencies. The bill is now headed to the state senate, where it is also expected to be approved.
The latest version of the bill replaces the term “cryptocurrency” with “central bank digital currency,” which is defined as a digital currency, digital trading medium, or digital monetary unit of account issued by the United States Federal Reserve System or a federal agency.
This new edition came after lawmakers apparently mistakenly introduced the bill for the first time with language that would also include bitcoin. The bill also prohibits any government agency or the Court of Common Justice from accepting payments using CBDCs and from participating in any test of a CBDC by any branch of the Federal Reserve.
Dan Spauler, director of industry affairs for the Blockchain Association, explained to Bitcoin Magazine how the bill could serve as a model for other states, including Tennessee and Virginia. He also expressed support for bitcoin, stating that “any anti-CBDC bill is pro-bitcoin.” Spoiler added that the bill’s language is intended to keep things “fairly simple, to the point, and effective.”
The bill received unanimous approval from the North Carolina House of Representatives, by a vote of 118 to none. After the bill is referred to the state senate, if approved, it will need to be signed into law by the governor.