North Carolina Politicians Suggest Legislation for Using Taxpayer Money to Buy Cryptocurrency, Specifically Bitcoin
North Carolina Mulls Over 5% Investment in Bitcoin through House Bill 92
North Carolina lawmakers are considering an ambitious bid to diversify their state's financial holdings by investing up to 5% of certain funds into Bitcoin through a proposed bill, House Bill 92, also known as the "NC Digital Assets Investments Act."
The proposed legislation, which has already received a vote in the House, aims to position the state at the forefront of cryptocurrency adoption. If approved, the bill would authorize the state treasurer to invest in Bitcoin and other digital assets provided they meet specific investment criteria.
House Bill 92, sponsored by Speaker Destin Hall, Representatives Mark Brody, and Steve Ross, sets a market capitalization threshold of $750 billion for the digital assets to be considered eligible for investment. As of now, Bitcoin is the only cryptocurrency meeting this qualification.
The bill dictates that the state will not invest more than 5% of any fund's balance in digital assets at any given time. The funds in question are primarily sourced from state-managed accounts including the General Fund, Highway Fund, and public pension systems. Furthermore, investments would be conducted through regulated digital asset exchange-traded products to ensure security and reduce risks.
The growing interest in Bitcoin investment has driven at least 23 other states to evaluate similar legislation. The proposal has been bolstered by federal discussions on financial market stability, with recent directives encouraging states to consider the role of Bitcoin in public finance.
Notably, some lawmakers and financial experts have raised concerns regarding Bitcoin's volatility and its potential impact on state funds and pension plans. The State Employees Association of North Carolina has expressed reservations about the proposal's potential implications for financial stability.
Those advocating for the bill argue that Bitcoin has demonstrated a sustainable growth pattern and investing in it could help North Carolina expand its financial holdings while aligning with its strategic vision.
The legislative process continues as the bill undergoes further review in the Senate. If approved, North Carolina could pioneer significant changes in state-level Bitcoin investments and financial management.
Relevant Detail: As of early May, House Bill 92 has passed the House and is currently under review in the Senate [1][2][5]. The latest version of the bill has reduced the investment cap to up to 5% of any single state retirement fund in digital assets.
- The proposed House Bill 92, if passed, would authorize the state treasurer to invest up to 5% of certain funds into Bitcoin and other digital assets that meet specific investment criteria, with Bitcoin currently meeting the $750 billion market capitalization threshold.
- The adoption of the NC Digital Assets Investments Act, or House Bill 92, would position North Carolina as a frontrunner in cryptocurrency adoption, following the footsteps of at least 23 other states that have also considered similar legislation.
- Despite concerns about Bitcoin's volatility and potential impact on state funds and pension plans, advocates for the bill argue that investing in Bitcoin could help North Carolina expand its financial holdings, align with its strategic vision, and potentially lead significant changes in state-level Bitcoin investments and financial management.
