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27/06/24
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Lawmakers in North Carolina Pass Bill Prohibiting CBDC
On June 26, the General Assembly of North Carolina passed House Bill 690 with the aim of restricting the state government from using and accepting a Federal Reserve-issued central bank digital currency (CBDC).
The bill was passed on a 109-4 vote in the state’s House on June 26 and the Senate passed it on a 39-5 vote on June 25, so it is moving to the table of the governor for approval.
If Governor Roy Cooper signs the bill into law, agencies and courts in North Carolina will not be able to accept “payment using central bank digital currency.” Likewise, the law would prohibit their participation in CBDC tests “by any Federal Reserve branch.”
Similarly, Louisiana state prohibited the use of central bank digital currencies (CBDCs) and established rules for miners and node operators through an amendment of its legislation. The amended law says the government must not ban the use of digital assets. The amendments are scheduled to take effect in August 2024.
According to Fed Chair Jerome Powell during a federal Senate Banking Committee hearing three months ago, the United States was “nowhere near recommending or let alone adopting a central bank digital currency in any form.” In May, the United States House passed a bill prohibiting the apex bank from offering a CBDC and is currently heading to the Senate.
The result of a survey carried out by the Bank for International Settlements (BIS) revealed that 94 percent of surveyed apex banks are exploring a CBDC; most central banks are working on both retail and wholesale CBDCs; about thirty percent focus on retail CBDCs only and only two percent are working on wholesale CBDCs. 54% are experimenting with proof of concept and 31% are running a pilot.
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