The lower house of the North Carolina General Assembly has approved a bill that paves the way for the state to study the feasibility and advantages of holding Bitcoin.
The bill, which passed the North Carolina House of Representatives on June 28, would allocate $50,000 for a study to explore the potential acquisition, secure storage, insurance, and liquidation of both gold bullion and virtual currencies, including Bitcoin.
The study aims to assess the impact of incorporating gold and cryptocurrency holdings into North Carolina’s financial assets.
It will investigate whether such holdings can act as a hedge against inflation and systemic credit risks.
Additionally, the study will examine whether including gold and crypto assets in the state’s portfolio could reduce volatility and increase overall returns.
One of the bill’s proposals involves the creation of a state-administered depository to house the digital asset holdings. Under this arrangement, North Carolina would act as the custodian of its crypto assets.
The study will also consider the costs and benefits associated with using a privately managed depository or utilizing the depository of another state.
The bill received support from the majority of the 120-member House, with 73 representatives voting in favor, 40 against, and seven absentees.
However, before the bill can become law or be vetoed, it must also pass through the Senate and receive final approval.
In a related development, on May 3, the North Carolina House unanimously passed a bill prohibiting payments to the state using a central bank digital currency (CBDC).
The legislation also forbids the United States Federal Reserve from conducting any future pilot CBDC tests in North Carolina.
Prior to that, on May 2, the Buncombe County Board of Commissioners in North Carolina passed a one-year moratorium on cryptocurrency mining.
This temporary ban reflects a growing concern over the environmental impact of mining operations.
As the bill progresses through the legislative process, North Carolina is demonstrating an increased interest in exploring the potential benefits and risks associated with cryptocurrencies, digital assets, and their role within the state’s financial infrastructure.
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