In a significant move, the lower house of the North Carolina legislature has passed a bill that could potentially lead to the state exploring the use of Bitcoin.
The proposed legislation tasks North Carolina’s Treasurer with conducting a comprehensive study, funded with a budget of $50,000, to assess the feasibility of acquiring, securely storing, insuring, and liquidating both gold bullion and virtual currencies like Bitcoin.
The study would specifically examine whether holding these assets could act as a hedge against inflation and systemic credit risks, as well as exploring if they could reduce volatility and increase overall returns on the state’s portfolio.
One interesting aspect of the bill is the potential establishment of a state-administered depository for cryptocurrencies, effectively making North Carolina the custodian of its virtual asset holdings.
The bill cleared the House with 73 votes in favor, 40 against, and seven absentees. However, it still needs to pass through the Senate before it can become law or be vetoed by Governor Roy Cooper.
This development follows earlier actions in North Carolina related to digital currencies. Recently, on May 3, the House unanimously passed a bill that would prohibit the use of central bank digital currencies (CBDCs) for state payments.
In addition, the bill includes a provision to prevent the Federal Reserve from conducting future pilot tests of CBDCs in North Carolina. Furthermore, on May 2, the Buncombe County Board of Commissioners imposed a one-year moratorium on cryptocurrency mining.
Compiled by Coinbold