With the study, the legislators in North Carolina aim to determine the impact of holding some of its funds in crypto and gold.
The lower house of the General Assembly in North Carolina has approved a bill calling for a study into the feasibility and potential benefits of the state acquiring Bitcoin (BTC).
The bill, which passed the North Carolina House of Representatives on June 28th, pledges $50,000 to examine the processes and implications of "acquiring, securely storing, insuring, and liquidating" gold and "virtual currency <...> such as Bitcoin."
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Out of the 120-member House, the bill secured 75 votes in favor, while 38 legislators opposed and seven were absent. The legislation now requires the Senate's approval before it is either signed into law by Governor Roy Cooper or vetoed.
The initiative aims to evaluate the impact of holding a share of the state's funds in crypto and gold.
The study's main focus would be determining if such holdings would function as a hedge against inflation and "systemic credit risks." On top of that, it would explore the potential of gold and cryptocurrencies in reducing volatility and boosting the state's portfolio returns.
Included in the bill is the contemplation of a state-administered crypto depository, which would position North Carolina as the custodian of its digital asset holdings. The study will also evaluate the pros and cons of leveraging a "privately managed depository or another state’s depository."
Previous legislation on digital currencies in North Carolina includes a May 3rd bill that unanimously passed the House. This bill would ban payments to the state using a central bank digital currency (CBDC) and prevent the United States Federal Reserve from using North Carolina for any future CBDC pilot testing.
The bill's passage marks a significant step towards Bitcoin's inclusion in the state's financial strategy. The proposed study could set the stage for North Carolina to become a trendsetter in the area of state-level Bitcoin and digital asset management. However, the outcome remains subject to Senate approval and gubernatorial assent.
