North Carolina Legislators Put Forward Plan for a State-Managed Bitcoin Fund
On Wednesday, lawmakers in North Carolina unveiled a bill aimed at establishing a state-operated Bitcoin reserve.
The proposed legislation, Senate Bill 327—known as the North Carolina Bitcoin Reserve and Investment Act—would empower the State Treasurer’s Office to invest up to 10% of public monies into $BTC, integrating cryptocurrency into the state’s long-term fiscal framework.
Spearheaded by Senators Johnson and Overcash, the bill successfully passed its initial Senate reading and was sent to the Rules and Operations Committee. Its objectives include creating a Strategic Bitcoin Reserve, advancing $BTC as an innovative financial asset, and positioning North Carolina at the forefront of crypto adoption among U.S. states.
The plan mandates that all Bitcoins be secured via cold storage wallets utilizing multi-signature authentication protocols under Treasurer supervision.
A dedicated division within the Treasurer’s office would oversee custody of these digital assets to maintain full state control. Additionally, a Bitcoin Economic Advisory Board comprising industry specialists would be formed to offer expert advice alongside monthly audits verifying reserve balances, security measures, and performance metrics.
Bitcoin purchases are intended to occur through regulated exchanges based in the United States with bulk acquisitions strategically timed according to market trends. The legislation also instructs exploration into potential $BTC mining ventures as an avenue for augmenting state holdings.
The use of this reserve is limited strictly to addressing severe economic emergencies, sanctioned investment strategies, financing essential infrastructure or economic growth projects, plus supporting research initiatives related to Bitcoin along with educational programs and business incentives tied thereto.
Dissolution or sale of any portion of $BTC reserves requires approval from no less than two-thirds majorities in both chambers of North Carolina’s General Assembly. Furthermore, these reserves may serve as collateral backing bonds issued for public funding purposes under this bill.
The Treasurer must provide quarterly updates detailing current status reports on value fluctuations and overall fund performance directly submitted back to legislative authorities.
This information will also be accessible publicly via official websites managed by Treasury staff per provisions outlined within this act. Compliance with applicable federal/state regulations governing cryptocurrency ownership/taxation is mandated while encouraging advocacy efforts promoting favorable national policies regarding digital currencies like Bitcoin.
LATEST: North Carolina advances legislation creating Strategic Bitcoin Reserve
Diverse U.S. States Embrace Cryptocurrency Reserves
A growing number of states across America are considering or have adopted policies incorporating $BTC-based reserves within their treasury management plans.
Laws permitting allocation percentages toward bitcoin investments exist already in Texas, , New Hampshire, , Arizona, , while Maryland, , Iowa, , Kentucky, , Michigan, , South Dakota,…, Illinois,&; Tennessee & Missouri have introduced similar proposals awaiting legislative action.&.... Other jurisdictions such as Oklahoma,&; Utah & Pennsylvania continue debating bills still held up in committees whereas Wyoming,
Montana & Florida faced stalled attempts or outright rejections.
These developments highlight an increasing trend towards leveraging bitcoin’s store-of-value properties combined with portfolio diversification benefits for managing public funds.
This article titled “North Carolina Legislators Put Forward Plan for a State-Managed Bitcoin Fund” originally appeared on “Bitcoin Magazine” authored by Micah Zimmerman.