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North Carolina House of Representatives has passed House Bill 721, which includes provisions for studying the acquisition and potential benefits of virtual currency, with a special focus on bitcoin. The bill, titled the State Precious Metals Depository Study, aims to examine the process of securely holding, insuring and liquidating virtual currency on behalf of the state. Now it has been sent to the Senate for further consideration.
As defined in GS 53-208.42(20), the law recognizes the growing importance of virtual currency, and proposes to evaluate its potential impact on the state’s financial strategy. The study outlined in the bill will analyze the expected benefits of allocating a portion of the general fund to virtual currency, with the goal of hedging against inflation and systemic credit risks, reducing overall portfolio volatility, and enhancing portfolio returns over time.
Language related to the study of the virtual currency, including a specific reference to bitcoin, was added after Dan Spuller, head of industry affairs at the North Carolina Blockchain Initiative. testified On behalf of the initiative before the North Carolina House Standing Committee. spular, who This was highlighted in subsequent tweets It is one of several pro-Bitcoin initiatives in the state that found unanimous support in language added to the bill.
In addition to exploring the potential benefits of virtual currencies such as bitcoin, the bill also emphasizes the importance of assessing the costs, benefits and safeguards associated with various depository options. The study will examine the feasibility of using a privately managed depository, another state’s depository, or setting up a state-administered depository within North Carolina. The ultimate goal is to determine the most appropriate custodian, guardian and administrator for virtual currency assets held by the state, its agencies, political subdivisions or other entities.
Quoting directly from the bill, it states, “The expected effect of allocating a portion of common funds to virtual currency is to hedge against inflation and systemic credit risks, reduce overall portfolio volatility, and enhance portfolio returns over time.” ”
The inclusion of virtual currency and bitcoin in the legislation reflects North Carolina’s proactive approach to studying bitcoin and exploring its potential benefits.
