North Carolina House Passes Bill to Ban State From Accepting CBDCs

The bill would ban North Carolina state government entities from accepting any CBDC, although a US digital dollar isn’t in the works just yet

article-image

Alexander Lukatskiy/Shutterstock, modified by Blockworks

share

In North Carolina, the House of Representatives passed a bill on Wednesday which seeks to prohibit government entities in the state from accepting payments made in central bank digital currencies (CBDCs).

The bill passed its second reading unanimously, 110-0, with two absentee votes. It was first introduced on Apr. 18 and sponsored by a raft of Republican state representatives.

North Carolina joins Florida in its opposition to CBDCs, or ‘digital dollars’. The Florida legislature has passed a bill, HB 7049, that amends the Uniform Commercial Code to include a definition for CBDCs.

The US Department of the Treasury, under President Joe Biden, is currently outlining the technology required to develop a digital dollar.

Vocal opposition to CBDCs has picked up in earnest ahead of the 2024 presidential campaign. Critic and presidential candidate Robert Kennedy Jr has joined Florida’s Governor Ron DeSantis’ calls, decrying the potential use of CBDCs for state-wide surveillance

Kennedy tweeted last month that:

We should be wary since CBDCs are the ultimate mechanisms for social surveillance and control.

DeSantis has expressed his personal fears on a number of occasions this year, implying that if the government takes control over digital currency, individuals might not be able to buy gasoline or firearms.

Ian Corp, an attorney at law firm Agentis, doubts that an anti CBDC-law would stand up to a federal CBDC.

“If the federal government institutes a CBDC, it could trump the Florida bill under the supremacy clause of the constitution,” he said.

CBDCs may not be good for Bitcoin

Proponents argue legislation prohibiting CBDCs could unwittingly harm innovation in digital assets, namely bitcoin.

The nonpartisan bitcoin think tank, Bitcoin Policy Institute, cautioned in March that anti-CBDC legislation may unintentionally impede the growth of the bitcoin ecosystem, unless it incorporates precise phrasing to assess BTC.

North Carolina’s anti-CBDC bill must now pass a state Senate vote before Governor Roy Cooper (a Democrat) can either veto or sign it into law.

Updated May 6th 2023 at 9:30am to include additional context on similar sentiment in Florida’s legislature.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

recent research

Pyth Cover.jpg

Research

Pyth is a low latency pull-based oracle. In a future that looks increasingly high frequency, with various alt L1s and L2s that have significantly shorter block times than Ethereum, and an explosion of “high-frequency” protocols such as oracle or CLOB perp DEXs, Pyth’s low latency oracle product looks much better positioned to capture a significant amount of market share in comparison to competitors.

article-image

Binance’s newest CEO has a history of holding regulatory positions

article-image

An exploiter tried to drain funds from Indexed Finance DAO but was caught after refusing to share the funds with a blackmailer

article-image

The DOJ made the plea agreements of Binance and Changpeng Zhao public on Tuesday

article-image

Binance settlement “an important part of clearing the way for the next bull market cycle,” crypto hedge fund executive says

article-image

Hester Peirce reiterated Tuesday that court cases are not the only path to regulatory clarity for crypto, but her colleagues do not always agree

article-image

The indictment followed leaks Monday that a Binance settlement deal was forthcoming