The North Carolina House of Representatives has passed legislation to ban payments to the state using central bank digital currency (CBDC).
North Carolina passes legislation against CBDC use
House Bill 690 passed unanimously on May 3, with all 118 members of the legislature supporting the proposal.
Originally called “No State Crypto Payments,” the bill was introduced in early April and was later revised to focus on digital currencies issued by the United States Federal Reserve (Fed).
The latest version of the bill aims to ban individuals from using CBDCs to make payments to the state.
Moreover, North Carolina is prohibited from being used by the Fed as a potential testing ground for CBDC pilots.
He suggested amending laws to ensure that “no government agency or general court of justice” receives payments using CBDCs or participates in the federal test of a digital dollar.
Since April, the bill has remained in committee before undergoing full readings and a vote. North Carolina’s move follows a similar effort by Montana, which passed a bill last month to prevent CBDCs from being used 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 Buncombe County, North Carolina Board of Commissioners approved a one-year moratorium on May 2 that allows officials to study the impact of cryptocurrency mining on the county’s resources and infrastructure.
The 2024 elections are approaching in the United States
As the 2024 US presidential election approaches, the movement to ban CBDCs is taking on more political significance.
In March 2023, Florida Governor Ron DeSantis, who is widely expected to run for the presidency of the United States, called for a ban on CBDCs. He cited concerns about the technology used in “American police and controlling their behaviour”.
Governor DeSantis is not the only politician opposing CBDCs.
Congressman Tom Emmer, a crypto supporter, warns that CBDCs could be weaponized as a political tool.
Lawmakers in various states echo these concerns. North Carolina is the latest to approve a bill opposing the use of CBDCs.
As the debate over CBDCs rages on, it remains to be seen how this issue will be addressed in the run-up to the 2024 presidential election.
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