The state House of Representatives voted on the bill, with 73 out of 120 members voting in its favor, 40 members against it, and the remaining seven were absent.
The lower house of the North Carolina General Assembly has passed a bill that would task the Department of State Treasurer to assess the feasibility of the state holding Bitcoin (BTC). The study will also measure the benefits that the state could derive from such investments. The bill proposes allocating $50,000 to study the acquisition, secure storage, insurance, and liquidation of gold bullion and other virtual assets like BTC.
The study aims to determine the impact of holding gold and cryptocurrencies like Bitcoin on North Carolina’s funds. It will also investigate whether these assets can help the state hedge against inflation or protect against systemic credit risks. Additionally, the study will examine whether these assets can reduce volatility and increase profits for the state.
The bill also explores the possibility of establishing a state-administered depository for cryptocurrencies, potentially making North Carolina a custodian for digital asset holdings in the United States. Before proceeding with this, the costs and benefits of using a privately managed depository or another state’s depository will be evaluated.
The state House of Representatives voted on the bill, with 73 out of 120 members voting in its favor, 40 members against it, and the remaining seven were absent. The bill will now need to be passed to the Senate, which can either approve it and sign it into law or reject it.
The Bill Could Change How Digital Assets Including Bitcoin Are Perceived by North Carolina Government
In another related matter, on May 4, the North Carolina House passed another bill with unanimous support. This bill prohibits the state from accepting payments made with a Central Bank Digital Currency (CBDC) and also prevents the United States Federal Reserve from using the state as a testing ground for future CBDC initiatives.
Initially, the bill was designed to stop all crypto payments within the state, but it was later amended to specifically prohibit CBDC payments. This means that state-affiliated institutions will not be accepting CBDC payments. While the legislation is in the best interest of the state, there are concerns that it could hinder innovation in digital assets and impede the growth of cryptocurrencies like Bitcoin in the state. Furthermore, the state recently imposed a one-year ban on crypto mining.
While North Carolina is taking steps to protect its citizens and mitigate the impact of cryptocurrencies, it is important to consider the potential benefits of digital assets to avoid falling behind in innovation.
Taken together, the CBDC and mining ban demonstrates North Carolina’s efforts to safeguard its people and regulate the influence of crypto. However, conducting a study on the potential benefits of digital assets has the potential to bring about significant changes in how cryptocurrencies and other digital assets are perceived in the state.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.
