In short: The North Carolina House of Representatives has passed a bill banning the use of central bank digital currencies (CBDCs) by government entities, with the bill also prohibiting the state from participating in Federal Reserve branch testing of a potential CBDC. The bill must now be passed by the Senate and Governor Roy Cooper before it can become law. North Carolina joins Florida in opposing CBDCs, while Democrat politicians have suggested taxing bitcoin mining to pay for "societal harms."
Quick analysis:
In a striking move, North Carolina’s House of Representatives has voted in favor of banning the acceptance of Central Bank Digital Currencies (CBDCs) by government entities. This decision follows a wave of opposition to CBDCs from both the Republican and Democrat parties.
The vote on May 3 saw a unanimous agreement to pass House Bill 690, which prohibits the state from accepting CBDCs or participating in any Federal Reserve branch testing. It is clear that there is a growing concern about the impact of CBDCs and it’s not just North Carolina that is taking a harsh stance.
Florida governor Ron DeSantis called for a ban on CBDC use last March, citing fears that the government would have too much control over consumer activities. Republican congress members Tom Emmer and Ted Cruz have also introduced federal legislation to ban CBDC implementation, arguing that they are an invasion of privacy. Meanwhile, Democratic presidential candidates Tulsi Gabbard and Robert Kennedy Jr have made similar claims.
But it’s not just CBDCs that are facing opposition in North Carolina. The Buncombe County Board of Commissioners recently approved a one-year moratorium on Bitcoin mining due to concerns about noise and pollution. This comes amidst growing calls for the industry to pay for its societal harms.
It remains to be seen whether Governor Roy Cooper will sign this legislation into law, but for now, it seems that North Carolina is leading the way in rejecting CBDCs. Will other states follow suit? Only time will tell.
Disclaimer: Our articles are NOT financial advice, we are not financial advisors. All investments are your own decisions. Please conduct your own research and seek advice from a licensed financial advisor.
Quick analysis:
In a striking move, North Carolina’s House of Representatives has voted in favor of banning the acceptance of Central Bank Digital Currencies (CBDCs) by government entities. This decision follows a wave of opposition to CBDCs from both the Republican and Democrat parties.
The vote on May 3 saw a unanimous agreement to pass House Bill 690, which prohibits the state from accepting CBDCs or participating in any Federal Reserve branch testing. It is clear that there is a growing concern about the impact of CBDCs and it’s not just North Carolina that is taking a harsh stance.
Florida governor Ron DeSantis called for a ban on CBDC use last March, citing fears that the government would have too much control over consumer activities. Republican congress members Tom Emmer and Ted Cruz have also introduced federal legislation to ban CBDC implementation, arguing that they are an invasion of privacy. Meanwhile, Democratic presidential candidates Tulsi Gabbard and Robert Kennedy Jr have made similar claims.
But it’s not just CBDCs that are facing opposition in North Carolina. The Buncombe County Board of Commissioners recently approved a one-year moratorium on Bitcoin mining due to concerns about noise and pollution. This comes amidst growing calls for the industry to pay for its societal harms.
It remains to be seen whether Governor Roy Cooper will sign this legislation into law, but for now, it seems that North Carolina is leading the way in rejecting CBDCs. Will other states follow suit? Only time will tell.
Disclaimer: Our articles are NOT financial advice, we are not financial advisors. All investments are your own decisions. Please conduct your own research and seek advice from a licensed financial advisor.
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