North Carolina Governor Roy Cooper, a Democrat, has vetoed a bill that would have banned the state from implementing a digital dollar issued by the US Federal Reserve.

Both chambers of the North Carolina General Assembly passed the bill by a 109-4 vote in the House and 39-5 in the Senate. But Rep. Roy Cooper called the bill premature, vague, and a failure to make important financial decisions that haven’t even been made yet.

The governor noted that the government is committed to implementing standards and safeguards at the federal level to protect consumers, investors, and businesses who want to transact with the digital dollar. Therefore, North Carolina officials should wait to see how the CBDC works before imposing any restrictions. However, Dan Spuller, director of development for the Blockchain Association in Washington, criticized the governor’s actions.

“Digital asset policy should remain in the hands of the American people. This will ensure that any development of government-backed stablecoins is designed to preserve citizen privacy, sovereignty, and free market competitiveness,”
wrote Spooler on social network X.

In April, North Carolina officials proposed a one-year ban on mining in the state to reduce electricity consumption, environmental damage, electronic waste and noise pollution.