North Carolina Representatives Propose Adding Bitcoin and Gold to State Treasury

North Carolina lawmakers have passed a bill that paves the way for a study on investing in digital assets, particularly Bitcoin, and precious metals like gold.

The bill aims to assess the potential benefits of diversifying the state’s General Fund through holdings of Bitcoin and gold, with the goal of hedging against inflation, reducing portfolio volatility, and achieving better long-term returns.

If approved by the state’s Senate and signed into law by Gov. Roy Cooper, North Carolina could take a significant step towards safeguarding its assets in an era of monetary devaluation.

Content: The recently passed bill, titled “State Precious Metals Depository Study,” marks the first step in North Carolina’s journey to protect its assets from devaluation.

Rep. Mark Brody, the Republican sponsor of the bill, emphasized the consistent devaluation of the US currency by the federal government as a key motivation behind exploring alternative assets.

The study will examine the potential acquisition, secure storage, and liquidation of digital assets and precious metals, as well as the feasibility of establishing a state-administered institution for custody purposes.

The decision to include digital assets in the study came after collaboration with industry experts, including Dan Spuller from the Blockchain Association.

While the initial focus was on gold, it became evident that further research was necessary to make an informed decision, leading to the inclusion of Bitcoin and other digital assets in the study.

In a bipartisan vote, the bill received support from all 67 Republican members and six Democrats in the House. However, the majority of Democrats expressed opposition, with 40 negative votes.

The bill allocates $50,000 for conducting the study, which will provide its findings and policy recommendations to the state’s Joint Legislative Commission on Governmental Operations in early 2023.