North Carolina Resists Digital Dollar: Ban on Accepting CBDC Issued by Fed

North Carolina Bans Acceptance of CBDC Issued by the Federal Reserve

North Carolina has become a subject of discussion regarding the central bank digital currency (CBDC) issue after the state’s General Assembly passed a law prohibiting the acceptance of any CBDC issued by the Federal Reserve (Fed).

Authorities’ Stance on CBDC

The law, approved by the General Assembly, prohibits accepting CBDC as a form of payment and participating in future pilot programs related to CBDC conducted by the Fed. Governor Roy Cooper vetoed the law, but the General Assembly overrode his veto, imposing the ban.

Arguments For and Against

Arguments presented by proponents and opponents of the ban mainly revolve around privacy concerns, financial freedom, and the state’s sovereignty. Opponents fear increased government surveillance and financial freedom restrictions associated with the introduction of a digital currency by the Fed.

The state authorities decided to remain independent concerning federal initiatives regarding digital currencies, which might influence the decisions of other states considering similar actions against the CBDC issued by the Fed.

Implications of the Decision for the Digital Dollar Debate

North Carolina’s stance could impact the broader debate on the digital dollar in the United States, thereby complicating Fed’s efforts to introduce a national CBDC implementation. The divide between states supporting or opposing the digital dollar may deepen as discussions continue at the federal and state levels.

Resistance Against the Digital Dollar

North Carolina’s actions signal resistance to the Fed’s introduction of the digital dollar, driven by concerns about privacy, financial freedom, and government control. This constitutes a significant step in the context of the further development of the digital currency market in the United States.