north Carolina plans up to $ 950 million in Bitcoin: New draft law could make the state a pioneer in state cryptocurrency reserves

<p> <strong> north Carolina plans up to $ 950 million in Bitcoin: New draft law could make the state a pioneer in state cryptocurrency reserves </strong> </p>

north Carolina plans Bitcoin investment: Senate Bill 327 in focus

The state of North Carolina plans to invest up to 10 % of its public funds in Bitcoin, which, according to current figures, could correspond to around $ 950 million. This is part of a trend in which more than a dozen US states consider the introduction of state Bitcoin reserves. On March 18, 2023, Senate Bill 327 (SB327), known as "NC Bitcoin Reserve and Investment Act", was presented by the Senators Todd Johnson, Brad Overcash and Timothy Moffitt.

goal of the draft law

The main objectives of the draft law are the establishment of a strategic bitcoin reserve and the promotion of Bitcoin investments as an innovative financial strategy. North Carolina would like to position itself as a pioneer in implementing cryptocurrencies at the state level. Specific figures on the state financial pool are not explicitly defined in legislation. However, the General Fund of North Carolina, according to data from the Office of the State Controller, has a value of $ 9.5 billion on March 14.

Important provisions of the draft law

The draft law stipulates that Bitcoin stocks must be kept in cold storage walls with multi-signature authentication. In addition, monthly exams of the stocks are provided. The state treasurer is authorized to carry out purchases on regulated crypto bonds in the United States. In addition, an examination of Bitcoin mining operations is required to increase state stocks inexpensively.

There are strict guidelines for using the reserve. To sell Bitcoin, a two -thirds majority in both chambers of the General Assembly is required. The reserve can be used to respond to financial crises, to finance infrastructure projects, to promote research and education in the field of Bitcoin and to secure bonds for public projects. In addition, the establishment of a Bitcoin economic advisory board is proposed to accompany the continuous administration of the reserve.

previous and future developments

SB327 is already the second draft law to create a Bitcoin reserve in North Carolina. The “NC Digital Assets Investments Act” (HB92) was recently introduced, which allows the state treasury to invest up to 10 % of state funds in digital assets with an average market capitalization of at least $ 750 billion.

In the further context, a total of 23 states brought a total of 39 draft laws to create state Bitcoin reserves by March 19, 2023. This trend has increased as President, especially after Donald Trump took office. The White House addresses that Bitcoin is viewed as a "digital gold", which makes it advantageous for the states to establish state Bitcoin reserves at an early stage.

A remarkable progress is the Senate Bill 1444 in Arizona, which was the first state Bitcoin reserve law to be transferred to the second reading and thus comes closer to the final farewell. There is also a corresponding bill in Texas, which passed the Senate Committee in January and is waiting for the final ratification. Legislative proposals in states such as Georgia, Florida and Illinois are also on the move, but in earlier stages of the legislative process.

FAZIT

The discussion about SB327 in North Carolina will continue in the coming weeks. If the draft law is accepted, North Carolina could be one of the first countries to integrate Bitcoin into its public financial strategy, which underlines growing acceptance and interest in digital assets in the USA.