North Carolina House Bill 721 has been passed to explore the benefits and implications of holding cryptocurrencies and precious metals in the state treasury.
The bill was introduced on Apr. 18, passing the House on Jun. 28 after the third reading, with 73 in favor, 40 against, and seven absent.
Section 1 of the bill stated that the state treasury would study the process of buying, storing, insuring, and liquidating metal bullion, such as gold, and virtual currency, such as Bitcoin (BTC,) to be held by the state.
It added that the potential benefits of doing so might provide a safety net from macroeconomic factors, even generating capital gains.
“the expected impact of allocating a portion of the General Fund to investment metal bullion and virtual currency to hedge against inflation and systemic credit risks, reduce overall portfolio volatility, and increase portfolio returns over time,”
Dan Spuller, Co-Chair of the North Carolina Blockchain Initiative, called the legislative result “another bipartisan victory,” further adding,
“This is a very important step to a more formal acknowledgement of #bitcoin in North Carolina. Lots of behind the scenes work, led by our friend Rep Mark Brody.”
The scope of the study will consider a “state-administered depository” for both types of assets – with the costs, benefits, and security weighed up against privately managed custody facilities.
The state treasury intends to report the study results to the Joint Legislative Commission on Governmental Operations before Jan. 1, 2024.
$50,000, payable from the state’s general fund, will cover the study’s cost.
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