North Carolina House Approves Bill to Initiate Study on Bitcoin Implementation

The North Carolina Department of State Treasurer has taken steps to deepen its understanding of Bitcoin. The lower house of the General Assembly has passed a bill to commission a comprehensive study on the feasibility and benefits of North Carolina holding Bitcoin, along with gold bullion.

Amid the ongoing crypto crisis in the United States, the North Carolina House of Representatives has taken a proactive stance to delve into the intricacies of the situation. On June 28, a bill was passed, allocating $50,000 to conduct a detailed analysis of “acquiring, securely storing, insuring, and liquidating” both gold bullion and virtual currencies such as Bitcoin.

The study aims to evaluate the potential impact of holding gold and cryptocurrency on North Carolina’s financial position. It will explore whether such investments could serve as a hedge against inflation and “system credit risks,” ultimately reducing volatility in the crypto market and increasing the state’s portfolio returns.

Implications of the Bill

If the bill is enacted into law, it could pave the way for the establishment of a state-administered depository for cryptocurrencies, making North Carolina the custodian of its digital currency holdings. The study will also analyze the costs and benefits associated with using a privately managed depository or opting for another state’s depository.

The bill received substantial support in the 120-membered House of Representatives, with 73 members voting in favor. It will now proceed to the Senate for consideration before being signed into law by Governor Roy Cooper.

This latest move follows another notable development in North Carolina’s approach to digital currencies. On May 3, the state’s House passed a bill that prohibits payments to the state using central bank digital currency (CBDC). Furthermore, the bill seeks to prevent the US Federal Reserve from conducting any future pilot CBDC tests in North Carolina.

With these progressive steps, North Carolina is positioning itself at the forefront of embracing digital currencies. These efforts to understand and explore the potential of cryptocurrencies could pave the way for a more stable and prosperous future in the crypto sector.