North Carolina's Senate has introduced a bill proposing to invest up to 10% of the state's general fund in Bitcoin. This move may set a precedent for state investments in cryptocurrencies in the US.
North Carolina's Bill
The North Carolina Senate introduced Senate Bill 327, known as the 'North Carolina Bitcoin Reserve and Investment Act'. This bill proposes to allow the state treasurer to invest up to 10% of the state's general fund, approximately $950 million, into Bitcoin. This could become one of the first instances of a US state directly investing in cryptocurrencies.
Trends in Other US States
North Carolina joins a growing list of states exploring cryptocurrency investments. As of February 2025, nearly two dozen states have introduced legislation to establish strategic Bitcoin reserves. For instance, Utah's House of Representatives recently passed a bill allowing the state treasurer to invest in Bitcoin and stablecoins. Similarly, New Mexico has introduced a bill proposing to allocate 5% of public funds into Bitcoin.
Context and Expert Reactions
These initiatives have sparked considerable debate. President Donald Trump has advocated for incorporating Bitcoin into national reserves, encouraging exploration of crypto assets. However, critics argue that the volatile nature of cryptocurrencies could pose significant risks. For instance, Texas's proposal to create a Strategic Bitcoin Reserve has been criticized for potentially risking taxpayer money in the unpredictable cryptocurrency market. Despite these concerns, the increasing number of states considering Bitcoin investments suggests a growing acceptance of digital assets in public finance.
Interest in cryptocurrencies is on the rise in the US, and states are beginning to explore strategic approaches to investing in Bitcoin. Despite the debates about risks, more states are willing to consider cryptocurrencies as part of their financial future.
