Bill 690 in North Carolina on the Federal Central Bank Digital Currency: Controversies and the Future of CBDC

Bill 690 in North Carolina Blocks Testing of the Federal Central Bank Digital Currency

The North Carolina General Assembly recently passed Bill 690, which holds significant implications for the future of government digital currencies. This provision blocks the testing of the Federal Central Bank Digital Currency (CBDC), sparking a series of discussions and controversies.

CBDC – What Is It?

CBDC, which stands for Central Bank Digital Currency, is a form of government digital currency that is not directly linked to physical cash and is issued by the central bank. It represents a step towards developing financial systems based on blockchain technology, aiming to streamline payments and transactions.

Controversies Surrounding Bill 690

The decision to pass Bill 690 in North Carolina has faced sharp criticism from some politicians. Governor Roy Cooper labeled it as “premature and reactionary,” arguing that the federal government is already implementing security measures for CBDC. However, a majority of the Senate supported blocking the testing of the Federal Central Bank Digital Currency, voting 27-17 to override the governor’s veto.

Stances in the Debate

The industry seems to have its own take on the matter. According to many experts, prioritizing privacy and market competition should be paramount in the future development of CBDC. However, not everyone agrees, leading to further debates on how government digital currencies should evolve.

Global Interest in CBDC

It is worth noting that the interest in CBDC is not limited to the United States. International research shows that 94% of central banks worldwide are working on projects related to government digital currencies. Planned CBDC tests in countries like Taiwan and China demonstrate that the trend of developing central bank digital currencies has a global character.

CBDC and the Future of Finance

Studies and experiments related to CBDC indicate the potential of these new technologies in promoting financial inclusion, reducing transaction costs, and streamlining payment systems. The future of government digital currencies appears to be highly promising, yet many issues require thorough analysis and discussion.