North Carolina General Assembly Passed Bill to Ban CBDCs

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As a researcher with a background in economics and experience following the development of central bank digital currencies (CBDCs) closely, I find the growing chorus against a US CBDC to be an intriguing development. The recent actions taken by North Carolina and Louisiana governments to restrict their state agencies from issuing or accepting CBDCs issued by the Federal Reserve are noteworthy. These state-level initiatives signal a growing concern among elected officials and their constituents regarding potential implications of a US CBDC on privacy, self-custody of digital assets, and the role of the US dollar in the economy.

On Wednesday, June 26, the North Carolina legislature enacted a law prohibiting the state administration from initiating or receiving a digital currency from the Federal Reserve serving as the central bank.

As a crypto investor, I’m excited about the recent development regarding House Bill 690. Yesterday, the state House passed the bill with a overwhelming vote of 109-4. This means that the bill is now on its way to Governor Roy Cooper for approval.

This week, Louisiana Governor Jeff Landry signed a bill prohibiting the state administration from both providing and receiving Central Bank Digital Currencies (CBDCs). Additionally, this Louisiana legislation contains a clause upholding the individual’s right to self-possess digital assets.

As a crypto investor, I can tell you that Senator Brad Overcash’s bill aims to protect one of America’s most valuable assets: the US dollar. He expects this bill to receive widespread support in both chambers of Congress. By passing this legislation in North Carolina, the ninth-largest state is sending a clear message to the federal government that we are against the creation of a Central Bank Digital Currency (CBDC) that could potentially threaten the stability of the US dollar.

With a strong majority of North Carolina lawmakers endorsing the bill, a potential veto by Governor Cooper may not stand firm, given that more than two-thirds of legislators in both houses support the legislation.

Chorus Against US CBDC Grows

Last month, I expressed my firm objection to the idea of a US Central Bank Digital Currency (CBDC) based on the potential risks it poses to American values and individual privacy rights. Furthermore, I criticized the Biden administration’s plan for including CBDC as part of their alleged surveillance strategy.

Instead of “On the other hand,” you could say “Contrarily,” or “However,” or even “But.” As for paraphrasing Trump’s statement about CBDCs, you could say “Trump has warned that if he is re-elected, he will prevent the CBDC project from advancing further, viewing it as a potential threat to individual liberties. In contrast, Trump has advocated for the continuation of Bitcoin mining operations, believing they are essential in combating the increasing influence of CBDCs.”

At a federal Senate Banking Committee meeting in March this year, Jerome Powell, the Chair of the Federal Reserve, stated that the United States was not at the point of suggesting or implementing a digital version of its central bank currency in any shape or form. In contrast to other economies, such as China, the US has made limited advancements toward creating a Central Bank Digital Currency (CBDC) for its Digital Dollar.

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2024-06-27 13:09