A bill mandating the North Carolina Department of State Treasurer to investigate the viability and benefits of the state holding Bitcoin has been approved by the General Assembly’s lower chamber.
The North Carolina House of Representatives passed a bill on June 28 mandating a $50,000 study of “acquiring, securely storing, insuring, and liquidating” gold bullion and “virtual currency […] such as Bitcoin.”
The study would examine the effects gold and cryptocurrency holdings would have if North Carolina invested a portion of its funds in gold and cryptocurrencies.
Specifically, it would investigate whether such holdings would hedge against inflation and “systemic credit risks” and whether gold and cryptocurrencies could reduce volatility and increase the state’s portfolio returns.
The measure contemplates establishing a state-run cryptocurrency depository, with North Carolina as its digital assets‘ custodian.
However, the survey would assess the costs and benefits of using a “privately managed depository or another state’s depository.”
The 120-member House approved the bill with 73 in favor, 40 opposed, and seven not voting.
The bill must pass the Senate before Governor Roy Cooper can sign it into law or veto it.
On May 3, the North Carolina House of Representatives unanimously enacted a bill prohibiting payments to the state using central bank digital currency (CBDC).
The measure prohibited the United States Federal Reserve from using North Carolina to test any future CBDC pilot programs.
North Carolina’s Buncombe County Board of Commissioners adopted a one-year ban on cryptocurrency mining the previous day, May 2.
