North Carolina plans to invest up to 10% of state funds in Bitcoin through a proposed bill.

The bill allows Bitcoin investments only if the asset has a market cap of at least 750 billion dollars in 12 months.

Supporters see Bitcoin as a hedge against inflation while critics worry about risks to public funds and pensions.

North Carolina legislators have introduced a bill to allocate up to 10% of state-managed funds into Bitcoin investments. House Bill 92, known as the “Digital Assets Investments Act,” aims to position the state at the forefront of cryptocurrency adoption. Lawmakers believe this initiative could enhance financial innovation and hedge against inflation.

Investment Criteria and Regulations

House Speaker Destin Hall, along with Representatives Mark Brody and Steve Ross, proposed the bill. Under this legislation, the state treasurer is authorized to invest in digital asset exchange-traded products. Investments must have a market capitalization of at least $750 billion from the previous year to qualify. Bitcoin stands as the sole cryptocurrency that satisfies these investment standards at present.

The proposed bill includes specific guidelines to regulate investments. The state will not invest more than 10% of any fund’s balance in digital assets at any time. The funds would come from state-managed sources, including the General Fund, Highway Fund, and public pension systems. Additionally, investments must be conducted through regulated digital asset exchange-traded products to ensure security and reduce risks.

National Trend and Federal Influence  

North Carolina is not the only state considering cryptocurrency investments. At least 23 other states are evaluating similar legislation. The growing interest in Bitcoin investment has been influenced by federal discussions on financial market stability. Recent directives encouraging states to assess Bitcoin’s role in public finance have further fueled this trend.

Support and Concerns 

The legislators backing the proposal emphasize that Bitcoin has displayed both sustainability and sustained growth patterns. Supporters believe implementing this initiative will help North Carolina expand its financial holdings while following its strategic vision. 

However, some lawmakers and financial experts have raised concerns. They warn that Bitcoin’s volatility could expose state funds to significant risks. The State Employees Association of North Carolina has also expressed reservations. The potential impact on pension funds and financial stability remains a key issue.

The proposed legislation is set for further review in the coming weeks. If approved, North Carolina could take a significant step in reshaping state-level Bitcoin investments and financial management.  Read MoreNews, Bitcoin News, Crypto Live News, NewsNow, Bitcoin, Bitcoin investment, Crypto market, cryptocurrency, House Bill 92, North Carolina, volatility 

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