The study aims to evaluate the potential implications and modalities of the state retaining crypto and handling digital currency custody.
A legislative proposal, which would mandate North Carolina’s Department of State Treasurer to assess the viability and advantages of the state retaining Bitcoin—currently valued at $30,375—has received the nod from the lower chamber of the General Assembly.
The North Carolina House of Representatives approved the bill on June 28, initiating a $50,000 study to scrutinize the processes involved in “procuring, securely safeguarding, insuring, and divesting” both gold bullion and “digital currency […] like Bitcoin.”
The investigation would delve into the consequences of gold and cryptocurrency holdings if North Carolina decided to maintain a fraction of its funds in crypto and gold.
More specifically, the study would explore if such holdings could provide a buffer against inflation and “systemic credit hazards,” and if gold and crypto assets could mitigate volatility, thereby boosting the state’s portfolio returns.
The bill contemplates the idea of instituting a state-governed crypto depository, which would render North Carolina the custodian of its digital asset holdings.
Nonetheless, the study would also weigh the pros and cons of employing a “privately operated depository or another state’s depository.”
The 120-strong House approved the bill, securing 73 votes in favor, 40 in opposition, and with seven members absent.
The bill must now gain Senate approval before it is either endorsed into law or vetoed by Governor Roy Cooper.
Earlier, on May 3, North Carolina’s House unanimously endorsed a bill that would ban state payments made through a central bank digital currency (CBDC).
The legislation decreed that the United States Federal Reserve would likewise be prohibited from using North Carolina as a testing ground for any forthcoming CBDC pilots.
The day prior, on May 2, a one-year ban on crypto mining was enacted by the Board of Commissioners for Buncombe County in North Carolina.