North Carolina Governor Roy Cooper has vetoed a bill that would prohibit the state from implementing a US Federal Reserve-issued central bank digital currency (CBDC), despite overwhelming support from the state’s House of Representatives and Senate.

Cooper faced backlash for what critics labeled a politically driven decision.

In a statement on June 5, he described House Bill 690 as “premature, vague, and reactionary,” deeming it unsuitable for enactment at this stage.

“Efforts are being made at the federal level to ensure standards and safeguards are in place to protect consumers, investors and businesses [using] digital assets and North Carolina should wait to see how they work before taking action.”

The veto followed decisive votes in late June, with the House passing the bill 109–4 and the Senate approving it 39–5.

Given the strong legislative support, North Carolina lawmakers could potentially override Cooper’s veto with a three-fifths majority in both chambers.

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The decision was met with criticism. Mitchell Askew, head analyst at Blockware Solutions and a North Carolina native, told Cointelegraph, “The veto from Governor Cooper was not representative of the desires of North Carolinians.”

He expressed disappointment that Cooper was “unwilling to put partisan politics aside” for legislation that he believes would benefit all residents.

“He vetoed only because his opponent Mark Robinson is in favor of the bill. It’s clear who the pro-Bitcoin and pro-freedom candidate is here.”

Similarly, Dan Spuller, head of industry affairs at the Blockchain Association, saw Cooper’s veto as a missed opportunity to firmly oppose a CBDC.

“[Digital asset] policy must remain in the hands of the American people, ensuring that any development of digital currency reflects our values of privacy, individual sovereignty, and free market competitiveness.”

Federal Reserve Chair Jerome Powell provided some context during a Senate Banking Committee hearing in March, stating that the US was “nowhere near recommending or let alone adopting a central bank digital currency in any form.”

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