The state of North Carolina has taken a firm stance against central bank digital currencies (CBDC), passing a bill that prohibits state agencies and institutions from accepting payments in the form of CBDCs. The bill, which was passed unanimously in its second reading by the state’s House of Representatives, also bans the state from participating in any pilot tests involving CBDCs, media reports said.
The move comes amid growing concerns about the potential risks posed by CBDCs, particularly with regards to their impact on financial stability and privacy. While the U.S. Treasury has indicated that it is evaluating the possibility of issuing a digital dollar, other countries like China and the European Union have already begun experimenting with their own digital currencies.
However, U.S. lawmakers appear to be increasingly opposed to the idea of a digital dollar, with Florida Governor Ron DeSantis proposing similar legislation to ban CBDC payments in his state. Crypto ally Rep. Tom Emmer (R-Minn.) has also expressed concerns that CBDCs could be used as a political tool.
The North Carolina bill, which was originally introduced under the title “No Cryptocurrency Payments to State,” was revised to focus specifically on digital currencies issued by the U.S. Federal Reserve. The bill is sponsored by North Carolina Representatives Harry Warren and Mark Brody.
The passage of this bill marks a significant setback for proponents of CBDCs, who argue that digital currencies offer numerous benefits, including increased efficiency, reduced costs, and greater financial inclusion. However, opponents of CBDCs remain concerned about the potential risks associated with these currencies, particularly with regards to their impact on the traditional banking system and the broader economy.
Despite these concerns, it seems likely that the debate over CBDCs will continue to intensify in the coming months and years, as more countries around the world begin to experiment with their own digital currencies. For now, however, North Carolina has taken a clear stance against CBDCs, and it remains to be seen whether other states will follow its lead.
