North Carolina House Unanimously Votes to Ban Digital Dollar Payments to the State

The House of Representatives of the U.S. state voted 118-0 to pass an amended version of a bill that initially sought to ban crypto payments.

AccessTimeIconMay 4, 2023 at 11:43 a.m. UTC
Updated May 4, 2023 at 5:58 p.m. UTC
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North Carolina's House of Representatives on Wednesday unanimously passed a bill prohibiting the state's agencies and institutions from accepting payments in central bank digital currencies (CBDC).

Representatives voted 118-0 (with two excused absences) in favor of the bill, in its second reading, that would prevent the state's court system or any agencies tied to the state from accepting a Federal Reserve-issued digital dollar. The bill also bans the state from participating in any pilot tests CBDCs.

While the U.S. Treasury Department has said leaders are evaluating the issuance of a digital dollar, countries including China have already run pilots, and the European Union is nearing the end of a two-year experiment into a digital euro.

But U.S. lawmakers are increasingly opposing the issuance of a digital dollar, with Florida Gov. Ron DeSantis proposing similar legislation to ban CBDC payments in his state. Crypto ally, and Majority Whip in the House of Representatives Tom Emmer (R-Minn.) has said CBDCs could be weaponized as a political tool.

The North Carolina bill was, in fact, introduced in early April under the title "No Cryptocurrency Payments to State," and was changed to focus on digital currencies issued by the U.S. Federal Reserve in an edition filed on Tuesday.

The bill is sponsored by North Carolina Representatives Harry Warren and Mark Brody.

Edited by Parikshit Mishra.


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Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.

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