Now headed to the state Senate, HB690 rectifies language that previously encompassed Bitcoin in its goal of restricting CBDC usage.
The North Carolina House of Representatives has unanimously passed House Bill 690, which prohibits the use of central bank digital currencies (CBDC) for payments to the state or any participation by the state in Federal Reserve branch testing of CBDC. The bill is now headed to the state Senate, where it is expected to be approved as well.
The latest version of the bill replaces the term “cryptocurrency” with “central bank digital currency,” which is defined as a digital currency, a digital medium of exchange, or a digital monetary unit of account issued by the US Federal Reserve System or a federal agency.
This new edition came after lawmakers seemingly mistakenly first introduced the bill with language that would encompass bitcoin as well. The bill also prohibits any state agency or the General Court of Justice from accepting payments using CBDCs and from participating in any test of a CBDC by any Federal Reserve branch.
Dan Spuller, Director of Industry Affairs at the Blockchain Association, explained to Bitcoin Magazine how the bill could serve as a model for other states, including Tennessee and Virginia. He also expressed his support for Bitcoin, stating that “any bill that is anti-CBDC is pro-Bitcoin.” Spuller added that the bill’s language aimed to keep things “fairly simple, to the point and effective.”
The bill received unanimous approval from the North Carolina House of Representatives, with a vote of 118-0. After the bill heads to the state Senate, if approved, it will need to be signed into law by the governor.