Lawmakers in North Carolina introduced legislation on Wednesday to create a state-controlled Bitcoin reserve.
Senate Bill 327, entitled North Carolina Bitcoin Reserve and Investment Actwould allow the state treasurer’s office to allocate up to 10% of public funds to BTC as part of the state’s long-term financial strategy.
The bill, sponsored by Senators Johnson and Overcash, passed its first reading in the Senate and was referred to the Rules and Operations Committee. Its stated goals include establishing a strategic bitcoin reserve, promoting BTC as a financial innovation, and positioning North Carolina as a leader in crypto adoption at the state level.
Under the proposal, the treasurer would manage the reserve using cold storage wallets with multi-signature authentication.
A new division within the treasurer’s office will take care of the assets and ensure state control. The bill also calls for a Bitcoin Economic Advisory Board composed of industry experts to provide guidance and monthly audits to verify reserve balances, security and performance.
Bitcoin purchases will be conducted through regulated US-based exchanges, with bulk purchases timed to take advantage of market conditions. The bill also directs the treasurer to explore BTC mining as a potential method of increasing government holdings.
Use of the reserve will be limited to severe financial crises, approved investment strategies, funding for critical infrastructure and economic development projects, and support for Bitcoin-related research, education and business incentives.
Any liquidation of BTC will require the approval of at least two-thirds of both houses of the General Assembly. The bill allows the reserve to back bonds as an alternative financing tool for public projects.
The treasurer will submit quarterly reports to the general meeting detailing the status, value and performance of the reserve.
Reports would also be publicly available on the treasurer’s website, according to the bill’s text. The bill includes provisions to comply with federal and state laws regarding cryptocurrency holdings and taxation, and calls for promoting federal regulations favorable to Bitcoin.
US states want Bitcoin
Several US states are exploring or have implemented BTC reserves as part of treasury strategies.
Texas, New Hampshire and Arizona have passed laws allowing portions of state funds to be allocated to Bitcoin, while Maryland, Iowa, Kentucky, North Carolina, Michigan, South Dakota, Illinois, Tennessee and Missouri have introduced legislation proposing similar reserves.
Other states, including Oklahoma, Utah and Pennsylvania, have considered bills that remain in committee, while proposals in Wyoming, Montana and Florida have stalled or been rejected. These efforts reflect a growing trend to use BTC as a potential hedge of value and diversify the government’s financial assets.