On March 19, Republican senators Todd Johnson, Brad Overcash, and Timothy Moffitt introduced Senate Bill 327 (SB327) that mandates the State Treasurer to allocate up to 10% of public funds to Bitcoin. The bill attempts to position North Carolina as a “leader in state-level cryptocurrency adoption.”
The bill urges the Treasurer to ensure that Bitcoin is stored in multi-signature cold storage and is audited on a monthly basis for transparency and security.
It also outlines that liquidation of Bitcoin holdings would be permitted only if there is a “severe financial crisis,” subject to approval from two-thirds of the General Assembly.
Besides, the bill mentions the creation of a Bitcoin Economic Advisory Board to offer guidance on the reserve’s management.
SB327 has a lot to say about Bitcoin-backed investments too. It authorizes the Treasurer to engage in staking, lending, and other regulated yield-generating activities.
Not only that, the bill suggests setting up Bitcoin mining operations in North Carolina in order to increase the state’s holdings at a lower cost.
On March 6, President Donald Trump signed the executive order to establish a strategic Bitcoin reserve at the federal level. Several states in the US are also considering doing the same at the state level.
In fact, North Carolina is among the 19 states in the US pursuing legislative measures to establish a strategic Bitcoin reserve.
So far, 28 US states have proposed setting up strategic Bitcoin reserves out of which 18 have introduced legislations for the same.
While the corresponding bills have reached the House of Representatives in 15 states, they have met rejection in five states during the early stages. In four states, the bills have been stalled after being introduced.
