The study would look at the potential effects of holding cryptocurrency and how the government would manage it.
The lower house of the General Assembly has approved a bill that would require the Department of State Treasurer of North Carolina to investigate the viability and advantages of the state owning Bitcoin.
The North Carolina House of Representatives passed a bill on June 28th authorizing the commissioning of a $50,000 study to look at “acquiring, securely storing, insuring, and liquidating” both gold bullion and “virtual currency […] such as Bitcoin.”
If North Carolina held some of its finances in cryptocurrencies and gold, the study would look into the effects that possessing those assets might have.
It would specifically investigate whether such investments may serve as a buffer against inflation and “systemic credit risks,” and whether gold and cryptocurrencies could lower volatility and boost the state’s portfolio returns.
The measure considers the creation of a state-run cryptocurrency repository, with North Carolina serving as the custodian of its holdings. However, the study would look at the expenses and gains associated with utilizing a “privately managed depository or another state’s depository.”
The bill was approved by the 120-member House with 73 votes in favor, 40 against, and 7 abstentions. Before Governor Roy Cooper signs the bill into law or vetoes it, it must pass the Senate.
A bill that would forbid the use of a central bank digital currency (CBDC) to make payments to the state was overwhelmingly approved by the North Carolina House on May 3rd. The legislation specified that the US Federal Reserve would not be permitted to test any upcoming pilot CBDCs in North Carolina.
The Board of Commissioners for Buncombe County in North Carolina had just the day before, on May 2nd, approved a 12-month ban on crypto mining.
The passage of the bill and its progress through the legislative process show that people are becoming more aware of the potential advantages and risks of cryptocurrencies, especially Bitcoin, and that they want to learn more about them and how they fit into the state’s financial system.