The North Carolina General Assembly introduced a bill Wednesday that would create a state-controlled Bitcoin reserve.
Senate Bill 327, titled the “North Carolina Bitcoin Reserve and Investment Act,” would authorize the state Department of Treasury to allocate up to 10% of public funds to BTC as part of the state’s long-term fiscal strategy.
The bill, introduced by Senators Johnson and Overcash, passed first reading in the Senate and was referred to the Rules and Administration Committee. Its goals include establishing a strategic Bitcoin reserve, promoting BTC as a financial innovation, and positioning North Carolina as a leader in state-level cryptocurrency adoption.
Under this proposal, treasurers would manage their reserves using cold storage wallets with multi-signature authentication.
A new department within the Ministry of Finance will manage the assets and ensure state control. The bill also calls for the Bitcoin Economic Advisory Board, made up of industry experts, to provide guidance and monthly audits to verify reserve balances, security, and performance.
Bitcoin acquisition will take place through regulated US-based exchanges, with bulk purchases taking advantage of market conditions. The bill also directs the Secretary of the Treasury to consider BTC mining operations as a potential way to increase national holdings.
The use of this reserve will be limited to support for severe financial crises, approved investment strategies, funding for critical infrastructure and economic development projects, and Bitcoin-related research, education, and business incentives.
Liquidation of BTC requires approval by at least two-thirds of both houses of the General Assembly. The bill allows reserves to back bonds as an alternative means of financing public projects.
The Minister of Finance submits a quarterly report to the General Assembly detailing the status, value and performance of the reserves.
According to the text of the bill, the report will also be published on the Treasury Department’s website. The bill includes provisions to comply with federal and state laws regarding holding and taxing virtual currencies, and encourages support for federal regulations that favor Bitcoin.
US states want Bitcoin
Several US states are considering or implementing BTC reserves as part of their national treasury strategies.
Texas, New Hampshire, and Arizona have enacted laws allowing a portion of state funds to be allocated to Bitcoin, and Maryland, Iowa, Kentucky, North Carolina, Michigan, South Dakota, Illinois, Tennessee, and Missouri have introduced bills proposing similar reserves.
Other states, including Oklahoma, Utah and Pennsylvania, are considering bills that remain in committee, while proposals in Wyoming, Montana and Florida have stalled or been defeated. These efforts reflect the growing trend of using BTC as a potential store of value hedge and diversifying the state’s financial assets.
