The North Carolina House has approved a bill that aims to assess the feasibility and benefits of the state holding Bitcoin (BTC) and gold. The proposed legislation mandates a $50,000 study conducted by the state’s Treasurer, focusing on the acquisition, secure storage, insurance, and liquidation of both physical gold and virtual currencies like Bitcoin.
The study seeks to evaluate the potential impact of incorporating cryptocurrency and gold into the state’s funds. It aims to determine if these assets can serve as hedges against inflation and systemic credit risks. Additionally, the research will explore whether holding gold and crypto could reduce portfolio volatility and increase returns.
The bill also contemplates the establishment of a state-administered depository for cryptocurrencies, making North Carolina the custodian of its virtual asset holdings. However, the study will analyze the costs and benefits associated with using either a privately managed depository or a depository from another state.
The bill received support in the lower house, securing 73 votes in favor, with 40 against and seven members absent. To become law, it must now pass the Senate and be either signed by Governor Roy Cooper or vetoed.
This development follows other recent legislative actions related to cryptocurrencies in North Carolina. On May 3, the House unanimously passed a bill that prohibits payments to the state using a central bank digital currency (CBDC). The bill also restricts the Federal Reserve from conducting future pilot CBDC tests in the state. Additionally, on May 2, Buncombe County’s Board of Commissioners enacted a one-year moratorium on crypto mining within the county.
By studying the implications and logistics of holding Bitcoin and gold, North Carolina is demonstrating an interest in understanding the potential advantages and challenges of incorporating these assets into its financial strategies. This bipartisan initiative highlights the evolving nature of cryptocurrency regulation and its growing recognition as a legitimate asset class in government circles.
Overall, this bill reflects North Carolina’s proactive approach to exploring new financial avenues, seeking to leverage the benefits that cryptocurrencies like Bitcoin and traditional assets like gold may offer to enhance its financial portfolio.