North Carolina is considering investing up to 5% of state retirement funds in cryptocurrencies. The new bills and their impact on the state's economy are attracting significant attention.
New Bills in North Carolina
On March 24, House Bill 506 was introduced in the North Carolina House of Representatives, aiming to establish a separate investment authority under the state’s treasury. This group will decide which digital assets can be included in the retirement fund. Following this, on March 25, Senate Bill 709 was introduced, echoing the same approach.
Crypto Investment Management
According to the bills, a digital asset is defined as any electronic asset that grants economic, proprietary, or access rights. These assets include cryptocurrencies, stablecoins, NFTs, and other similar items. The new entity, named the 'North Carolina Investment Authority,' will be required to carefully assess the risks and benefits of each digital asset to ensure the investments are secure. The bill does not mandate the investment authority to hold Bitcoin or any digital asset for a long term.
US Trends Regarding Bitcoin
On March 18, the Bitcoin Reserve and Investment Act was introduced in the North Carolina Senate, providing for the investment of up to 10% of public funds specifically in Bitcoin. Proposed by Republicans Todd Johnson, Brad Overcash, and Timothy Moffitt, this bill is viewed as a 'financial innovation strategy' to strengthen North Carolina’s economy. The treasurer would be responsible for securely storing Bitcoin, which could only be sold during a 'severe financial crisis' with the approval of two-thirds of the North Carolina General Assembly.
The legislative initiatives in North Carolina to invest retirement funds in cryptocurrencies reflect the state's desire to join the national trend of leveraging digital assets in government economies. These steps could significantly impact the region's economic stability and innovative development.
