The U.S. state of North Carolina has advanced a bill to study holding cryptocurrencies, particularly bitcoin, in the state treasury. The bill appropriates $50,000 from the state’s general fund to study three areas, including “The process of acquiring, securely storing, insuring, and liquidating … virtual currency, such as bitcoin, that may be held on behalf of the state.”
North Carolina Explores Holding Bitcoin
The U.S. state of North Carolina has advanced House Bill 721 (HB721) titled “State Precious Metals Depository Study.” The bill appropriates $50,000 from the state’s general fund, which is made up of tax revenues, excluding transportation, to the state treasurer to conduct a study that examines three key areas. The first area involves:
The process of acquiring, securely storing, insuring, and liquidating … virtual currency, such as bitcoin, that may be held on behalf of the state.
The second area is the “expected impact of allocating a portion of the general fund” to “virtual currency to hedge against inflation and systemic credit risks, reduce overall portfolio volatility, and increase portfolio returns over time.”
The third is the “costs, benefits, and security of utilizing a privately managed depository or another state’s depository or creating a state-administered depository in North Carolina to serve as the custodian, guardian, and administrator of … virtual currency that may be transferred to or otherwise acquired by this state or an agency, a political subdivision, or another instrumentality of this state and to provide a repository for investors to use for such assets.”
Dan Spuller, senior director of Industry Affairs at Blockchain Association, tweeted Wednesday:
This is a very important step to a more formal acknowledgement of bitcoin in North Carolina.
Initially, HB721 did not include digital assets or bitcoin. Spuller tweeted on June 15 that he testified at the NC House Standing Committee in support of adding digital assets custody and bitcoin to the bill.
HB721 requires the NC Department of State Treasurer to report on the results of the study and provide recommendations to the Joint Legislative Commission on Governmental Operations by Jan. 1, 2024. The NC House passed the bill on the third reading on Wednesday. On Thursday, the bill passed the NC Senate’s first reading and is now referred to the Committee on Rules and Operations of the Senate.
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