A new bill proposes allocating $950 million of state funds for investments in Bitcoin.
A new proposal introduced in North Carolina would allow the state to make public investments in Bitcoin. Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt have introduced a bill titled the “NC Bitcoin Reserve and Investment Act” (SB327), which would authorize the State Treasurer’s Office to allocate up to 10% of public state funds into Bitcoin. This percentage, applied to the current general fund of $9.5 billion, could result in a potential investment of around $950 million.
If approved, the bill would lead to the creation of a specific Bitcoin reserve, managed by the State Treasurer. The bill stipulates that the acquired bitcoins be stored in multi-signature cold wallets and undergo monthly audits. Purchases would be made exclusively through regulated cryptocurrency exchanges based in the U.S., while the possibility of mining operations to increase the reserves would also be explored.
Regulation and use of bitcoins
The proposal establishes restrictions on the use of the reserve, requiring approval from two-thirds of both chambers of the General Assembly for any liquidation of bitcoin. Permitted uses include:
- response to major financial crises;
- funding of critical infrastructure;
- support for Bitcoin research and education;
- collateral for bonds for public projects.
A Bitcoin Economic Advisory Board composed of industry experts would provide ongoing advice, while the Treasurer would be required to submit quarterly reports on the reserve’s status and performance.
Bitcoin in North Carolina: second legislative attempt
SB327 marks the second bill for a strategic Bitcoin reserve introduced in the state. Last month, Representatives Destin Hall, Mark Brody, and Steve Ross introduced the “NC Digital Assets Investments Act” (HB92), which would allow the State Treasurer to invest up to 10% of state funds in digital assets with a minimum market capitalization of $750 billion. HB92 passed its first reading on February 12 and was referred to the Committee on Pensions and Retirement earlier this month for further review.
