In a significant development, the lower house of the North Carolina legislature has successfully passed a bill that could pave the way for the state to explore the feasibility of holding Bitcoin.
Under the proposed legislation, North Carolina’s Treasurer would be tasked with conducting a thorough study, backed by a budget of $50,000, to evaluate the potential benefits and practicality of acquiring, securely storing, insuring, and liquidating both gold bullion and virtual currencies such as Bitcoin.
Specifically, the investigation would delve into whether such holdings could serve as a hedge against inflation and systemic credit risks, while also determining if they could potentially reduce volatility and increase overall returns on the state’s portfolio.
One intriguing aspect of the bill is the possibility of establishing a state-administered depository for cryptocurrencies, effectively positioning North Carolina as the custodian of its virtual asset holdings.
With 73 votes in favor, 40 against, and seven absentees, the bill successfully cleared the House, marking a significant step forward. Nevertheless, it still needs to pass through the Senate before it can be either signed into law or vetoed by Governor Roy Cooper.
This development follows earlier legislative actions in North Carolina regarding digital currencies. Just recently, on May 3, the House unanimously passed a bill that would prohibit the use of central bank digital currencies (CBDCs) for payments to the state.
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Additionally, the bill included a provision to prevent the Federal Reserve from conducting future pilot CBDC tests in North Carolina. Furthermore, on May 2, the Board of Commissioners for Buncombe County in North Carolina imposed a one-year moratorium on cryptocurrency mining.
