North Carolina is the first US state to plan a Bitcoin reserve: a bold step into the financial future

North Carolina is the first US state to plan a Bitcoin reserve: a bold step into the financial future

North Carolina: Paving the way for Bitcoin investments in government funds

The US state of North Carolina is planning an innovative step into the world of financial technologies with the new bill “Senate Bill 327”. This envisages investing up to 10% of public funds in Bitcoin (BTC). This could make North Carolina the first state to introduce an officially recognized Bitcoin reserve as a strategic financial tool.

Bitcoin reserve as part of the state financial strategy

The bill, introduced by Senators Todd Johnson and Brad Overcash and supported by Timothy Moffitt, aims to integrate Bitcoin into the state's long-term financial policy. The newly created Bitcoin reserve will not only act as a store of value, but also offer the potential for further participation in the crypto sector.

According to the bill, the Ministry of Finance will be given the authority to convert up to 10% of available public funds into Bitcoin. This Bitcoin reserve is stored in so-called cold storage with multi-signature security - a method that is often considered safe among experienced investors.

Bitcoin purchases are planned to be made exclusively through regulated U.S. exchanges and will be done in bulk to take advantage of favorable market movements. Responsibility for managing the Bitcoin reserve will be assigned to a newly established department in the Office of the State Treasurer, which will be responsible for oversight, monthly audits and required insurance.

In addition, a Bitcoin Economic Advisory Board will be created. This panel of experts is intended to make strategic recommendations. The state is also considering the possibility of generating additional returns through activities such as Bitcoin lending or setting up mining operations.

Clear guidelines for using the Bitcoin Reserve

The law sets clear framework conditions for the use of the Bitcoin reserve. Liquidation of Bitcoin holdings is only permitted in the event of a financial emergency or in the case of approved investment strategies and infrastructure projects. In all other cases the consent of Parliament is required. Transparency plays a key role, which is why the Treasury Department is required to provide quarterly reports to the legislature and public updates.

North Carolina's move fits into a broader trend that more and more U.S. states are exploring by investing some of their public resources in cryptocurrencies. Recently, former President Donald Trump signed an executive order aimed at creating a national strategic Bitcoin reserve based on confiscated Bitcoins.

What was once considered a niche investment is increasingly becoming part of government financial policy. The potential adoption of Bitcoin by states like North Carolina could mark the start of a new era in the financial landscape. At the time of writing, Bitcoin price is at $83,823, down 1.62% in the last 24 hours.