New North Carolina Bill Sparks Crypto Policy Debate
The state treasurer of North Carolina is the most recent US state to propose legislation allowing the investment of public funds in eligible digital assets. By enabling the treasurer to include digital assets in the state’s portfolio, the “NC Digital Assets Investments Act” (HB 92), which was filed by North Carolina Speaker of the House Destin Hall on February 10, would diversify the state’s investments.
According to the bill, the State Treasurer may allocate up to 10% of funds and retirement systems in North Carolina to Bitcoin ETPs. This implies that the government might invest over $10 billion in funds based on the oldest cryptocurrency in the world. The proposed law requires the State Treasurer to invest in exchange-traded instruments that track digital assets with a minimum average market capitalization of $750 billion over the previous 12 months, even if it doesn’t specifically include Bitcoin.
Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption and innovation,
Hall
Public Funds in Crypto? North Carolina Eyes Bitcoin Amid Economic Shifts
The inflation and devaluation of the US dollar, as well as the possibility of returns from state funds, such as those for teachers and state employees’ pensions, insurance funds, and veterans’ funds, are some of the reasons lawmakers and bill sponsors cited for investing in cryptocurrency assets. Legislators in North Carolina are debating the idea of using public funds to purchase Bitcoin exchange-traded products in this direction. As of this writing, just one digital asset is suitable: Bitcoin.
Blockchain technology, decentralized finance, and other innovations in the crypto space will shape our future in many new ways. North Carolina is poised to capitalize on these emerging opportunities,
bill co-sponsor Mike Schietzelt
North Carolina’s Mixed Crypto Policies: Support for Bitcoin, Opposition to CBDCs
In the past, North Carolina has pushed laws that support cryptocurrency through its government. The state’s House of Representatives passed legislation in 2023 that would forbid state government agencies from taking central payments denominated in central bank digital currencies, or CBDCs. Some privacy advocates and crypto-natives are against CBDCs because they are a type of virtual asset that is controlled by the state.
However, not all North Carolina lawmakers are in favor of cryptocurrency. According to local news site NC Newsline, lawmakers last year put forth a bill that would either ban or impose more stringent rules on the mining of digital assets in Henderson, Polk, and Rutherford Counties. It is therefore a mystery whether the current draft law will be adopted or not.
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