The North Carolina House of Representatives has passed a bill that would authorize the state’s Department of State Treasurer to conduct a study on the feasibility and benefits of holding Bitcoin (BTC) and gold bullion. The bill, known as HB721, was approved on June 28 and proposes a $50,000 study to explore the acquisition, secure storage, insurance, and liquidation of both assets.
The study aims to determine whether holding Bitcoin and gold could serve as a hedge against inflation and systemic credit risks. It will also investigate whether these investments could reduce volatility and increase the state’s portfolio returns. Additionally, the bill considers the establishment of a state-administered depository for crypto assets, which would make North Carolina the custodian of its digital asset holdings.
While the study primarily focuses on the potential benefits of holding Bitcoin and gold, it will also examine the costs and benefits of using a privately managed depository or another state’s depository. This approach allows for a thorough evaluation of the various options available to the state.
The bill was passed by the 120-member House, with 73 members voting in favor, 40 against, and seven absent. However, for the bill to become law, it must now pass the Senate and either be signed into law or vetoed by Governor Roy Cooper.
This recent development in North Carolina comes after the state’s House unanimously passed a bill on May 3, banning the use of central bank digital currency (CBDC) payments to the state. The bill also restricted the United States Federal Reserve from conducting any future pilot CBDC tests in North Carolina.
In addition, on May 2, the Board of Commissioners for Buncombe County in North Carolina passed a one-year moratorium on crypto mining. These actions reflect the state’s growing involvement and interest in cryptocurrency and digital assets.
The passage of HB721 is being hailed as a bipartisan victory, with both Republicans and Democrats coming together to support the bill. The initiative was led by the North Carolina Blockchain Initiative and the Sound Money Defense League.
Overall, the bill represents a step forward in exploring the potential benefits of incorporating Bitcoin and gold into North Carolina’s financial portfolio. The study will provide valuable insights into the feasibility and advantages of these assets, allowing the state to make informed decisions regarding their adoption and utilization. The results of the study could have implications not just for North Carolina but for other states considering similar initiatives.
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