NC lawmakers look to override governor veto on cryptocurrency

CHARLOTTE (QUEEN CITY NEWS) – North Carolina lawmakers aren’t saying state agencies won’t accept digital currency as payment, but recently passed legislation does say the state will not receive digital payments from the US Government.

This money is called Central Bank Digital Currency, but it’s a vote that has some economists baffled.

Central Bank Digital Currency would be money issued by the Federal Reserve and some lawmakers believe residents would lose financial privacy because the government would be able to monitor every transaction.

It’s no secret more Americans are using less cash, but House Bill 690 prohibits all state offices from receiving Central Bank Digital Currency, also known as CBDC.

The legislation also prohibits North Carolina state offices from participating in any test transactions of CBDC as well. Rules and regulations are not even in place for the Federal Reserve to issue digital currency and that’s why some wonder why the legislation was passed by the North Carolina House and Senate.

An economist at the University of North Carolina, Chapel Hill says this money would be regulated, unlike a lot of current digital currencies.  “We’ve seen individuals lose money in private sector digital currencies, think FTX, right and that is not the only case,” says Gerald Cohen, chief economist for the Kenan Institute of Private Enterprise at UNC Chapel Hill, Kenan-Flagler Business School. “So, the question is do you want a well-regulated organization that already controls the number of dollars? They’re already doing that.”

Governor Roy Cooper vetoed House Bill 690 earlier this month. In part, his statement reads, “This legislation is premature, vague, and reactionary, and proposes an end result on important monetary decisions that haven’t even been made yet.”

The North Carolina House of Representatives was set to hold a veto override vote on this issue Monday afternoon. But that vote was delayed until July 31.

Queen City News reached out to NC House Speaker Tim Moore’s office to find out why the vote was moved, but have not received a response at this time.

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