North Carolina House passes bill to commission study on holding Bitcoin

The North Carolina House of Representatives has made significant progress in passing a bill that calls for a comprehensive study by the Department of State Treasurer on the feasibility and advantages of the state holding Bitcoin. The bill, approved on June 28, aims to allocate $50,000 towards examining the potential acquisition, secure storage, insurance, and liquidation of both gold bullion and virtual currencies like Bitcoin.

The study’s primary objective is to assess the impact of incorporating gold and cryptocurrency holdings into North Carolina’s financial reserves. It seeks to determine if such holdings could act as a hedge against inflation and systemic credit risks, while potentially reducing portfolio volatility and increasing returns.

One notable proposal in the bill is the exploration of establishing a state-administered depository for cryptocurrencies, with North Carolina serving as the custodian for digital asset holdings. However, the study would also consider the costs and benefits associated with utilizing a privately managed depository or a depository from another state.

In the House vote, the bill secured passage with 73 members in favor, 40 against, and seven absent. The next step for the bill is to gain approval from the Senate, after which it will either be signed into law or vetoed by Governor Roy Cooper.

This recent development follows another legislative action taken in North Carolina on May 3, when the House unanimously passed a bill prohibiting payments to the state using a central bank digital currency (CBDC). The bill also includes provisions to prevent the United States Federal Reserve from conducting pilot tests of any future CBDC using North Carolina as a testing ground.

Additionally, on May 2, the Board of Commissioners for Buncombe County in North Carolina approved a one-year moratorium on cryptocurrency mining, indicating ongoing considerations and discussions surrounding digital assets within the state.

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