North Carolina takes a bold step into the cryptocurrency world with the Bitcoin bill. If passed, the state may invest up to 10% of its public funds in Bitcoin.
New Bitcoin Bill
In March 2025, North Carolina introduced the Bitcoin Reserve and Investment Act (SB327), allowing the state to invest up to 10% of its $9.5 billion budget in Bitcoin. This move aims to change the state's financial management approach. If the bill passes, North Carolina could lead in using digital assets for public investment.
Benefits and Limitations of the Bill
Led by Senators Todd Johnson and Brad Overcash, the bill includes storing Bitcoin in multi-signature cold storage to ensure security. Monthly audits will be conducted to provide proof of reserve. The bill also limits Bitcoin sales to severe financial crises, under strict conditions.
Impact of Cryptocurrencies on State Investments
As cryptocurrencies gain popularity, states are beginning to include digital assets in their financial portfolios, potentially bringing innovation and aiding taxpayers. However, Bitcoin's volatility and unclear regulations pose significant risks. Nevertheless, this major investment highlights increasing governmental interest in digital assets as a store of value and hedge against traditional financial risks.
North Carolina's Bitcoin investment bill may set an example for other states, balancing the benefits of cryptocurrency investments with the need for security and oversight.
