North Carolina CBDC Prohibition

North Carolina’s No Central Bank Digital Currency Payments to State law, enacted as Session Law 2024-48 / House Bill 690, prohibits state agencies and the General Court of Justice from accepting central bank digital currency payments or participating in Federal Reserve branch CBDC testing. The act became law on September 9, 2024, after the General Assembly overrode the Governor’s veto, and it is effective as of that date.

North Carolina CBDC prohibition overview

The statute adds a new section, G.S. 147-86.19, to Article 6A of Chapter 147 of the North Carolina General Statutes. Its scope is narrow but direct: it does not create a general digital asset regulatory framework, regulate private cryptocurrency transactions, or address stablecoins. Instead, it focuses on whether North Carolina government entities may accept a federally issued CBDC as payment or join CBDC testing by a Federal Reserve branch.

The official act defines “central bank digital currency” as a digital currency, digital medium of exchange, or digital monetary unit of account issued by the United States Federal Reserve System or a federal agency and made directly available to consumers. The definition also includes a comparable instrument processed or validated directly by those federal entities.

Key provisions

• State payment restriction: No state agency or General Court of Justice entity may accept payment using a central bank digital currency.
• Federal Reserve testing restriction: State agencies and the General Court of Justice may not participate in any CBDC test conducted by a Federal Reserve branch.
• Covered entities: The act applies to state agencies and, through the new statutory language, to agencies, institutions, bureaus, boards, commissions, or officers of the General Court of Justice.
• Severability: The law includes a severability clause preserving the remaining provisions if one application is held invalid.

Status and timeline

House Bill 690 was ratified by the General Assembly on June 27, 2024. Governor Roy Cooper vetoed the bill on July 5, 2024. The act became law notwithstanding the Governor’s objections on September 9, 2024. The official session law states that it is “effective when it becomes law,” making September 9, 2024 the operative effective date.

Jurisdictional impact

For CryptoSlate’s law taxonomy, the measure is best treated as an Effective U.S. state statute in North Carolina. Its core topic is CBDCs & State-Issued Tokens, with secondary relevance to Payments, Banking & Financial Access, and Privacy & Cybersecurity. The law’s practical effect is limited to state governmental acceptance and testing activity; it does not independently prohibit the Federal Reserve or federal agencies from researching, issuing, or operating a CBDC at the national level.