The North Carolina House of Representatives has passed a bill that paves the way for a study to be conducted on the feasibility and potential benefits of the state holding Bitcoin and gold bullion. This bill signals North Carolina’s growing interest in exploring the role of cryptocurrencies in its financial portfolio. Let’s delve into the details of this significant development.
Exploring Crypto and Gold Holdings
The North Carolina House of Representatives passed bill seeks to commission a $50,000 study to evaluate the potential of acquiring, securely storing, insuring, and liquidating gold bullion and cryptocurrencies like Bitcoin. The study aims to determine the impact of these holdings on inflation hedging, mitigating systemic credit risks, reducing volatility, and increasing portfolio returns. It also contemplates the creation of a state-administered depository to safeguard virtual asset holdings.
Senate Approval and Potential Implications
Before becoming law, the bill must pass the Senate and receive either Governor Roy Cooper’s signature or a veto. If approved, North Carolina could become one of the first states to formally explore the use of cryptocurrencies as part of its financial strategy. Considering the costs and benefits of utilizing privately managed or state-administered depositories, the study will provide valuable insights for decision-makers.
Prior Legislative Actions
Earlier this year, the North Carolina House unanimously passed a bill that prohibited payments to the state using a central bank digital currency (CBDC). Moreover, the state expressed its resistance to becoming a testing ground for future pilot CBDC initiatives by the Federal Reserve. Additionally, Buncombe County’s Board of Commissioners in North Carolina enacted a one-year moratorium on cryptocurrency mining, reflecting the region’s evolving regulatory landscape.
The North Carolina House’s approval of the bill represents a significant step toward understanding the potential benefits and risks associated with incorporating cryptocurrencies like Bitcoin into the state’s financial reserves.
