North Carolina House Passes Bill to Open the Door for Bitcoin Investment

The North Carolina House of Representatives has passed a bill that opens the door for the state to invest in Bitcoin and other cryptocurrencies.

The North Carolina House of Representatives has passed a bill that opens the door for the state to invest in Bitcoin and other cryptocurrencies.

House Bill 92, known as the Strategic Bitcoin Reserve bill, was approved on April 30, marking a significant step towards integrating digital assets into the state’s financial fabric. This move follows a broader trend across the United States where states are exploring the integration of digital assets into their financial strategies.

The bill, which now heads to the Senate for approval, introduces a framework for a limited and diversified digital asset reserve, primarily focusing on Bitcoin. It also permits the state and its employees to invest a portion of their pension funds in cryptocurrency mutual funds.

The initiative to include Bitcoin in the state's investment portfolio was spearheaded by House Speaker Destin Hall, who has been advocating for adopting more progressive investment strategies for North Carolina.

"This bill is a critical step towards securing the long-term financial stability of our state," said Hall. "As the federal government continues to print money and devalue the dollar, we need to take action to protect our purchasing power and ensure that our investments keep pace with inflation."

The bill, which was written by Republican lawmakers, passed with a vote of 56-38, largely along party lines. It now moves to the Senate, where it faces an uncertain fate.

The bill's passage comes as several U.S. states are considering legislation to regulate and integrate cryptocurrency. Arizona recently passed a bill that allows state retirement funds to invest in Bitcoin, while Wyoming has become a hub for blockchain and cryptocurrency companies.

The North Carolina bill is also a response to concerns about the state's pension system, which has been running a deficit for several years. The bill would allow the state treasurer to make greater investment decisions, aiming to improve the pension fund's performance.

"This bill is a common-sense measure that will provide our state with the tools it needs to navigate the rapidly changing financial landscape," said Republican state Rep. Keith Kidwell, one of the bill's sponsors. "We need to be able to diversify our investments and stay ahead of the curve if we want to ensure that our state's finances are strong for generations to come."

But some lawmakers expressed concern about the bill, particularly the potential for the state to lose money on cryptocurrency investments.

"I still have a lot of questions about this investment strategy and the level of commitment we’re making to it," said Democratic state Rep. Maria Cervania, of Wake County.

The bill's passage also faces opposition from some members of the State Employees Association of North Carolina, who argue that the bill would jeopardize their pensions. However, Governor Josh Stein has expressed support for the bill, and believes that allowing the state treasurer more control over investments is a positive step.

News data source: kdj.com

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