North Carolina is taking a big step forward in embracing Bitcoin within its financial plan. A new bill has been introduced that could allow the state’s treasurer to invest a portion of public funds in digital assets, focusing on Bitcoin exchange-traded products (ETPs).
This move positions North Carolina as the 20th state in the U.S. to explore legislation involving Bitcoin reserves.
Investing Up to 10% in Bitcoin
House Bill 92, known as the "NC Digital Assets Investments Act," seeks to authorize the state treasurer to allocate up to 10% of state-managed funds into crypto-based ETPs.
This ‘big news’ was shared on Twitter by CryptoJack:
"BREAKING: 🇺🇸NORTH CAROLINA INTRODUCES STRATEGIC BITCOIN RESERVE BILL. IT AIMS TO BECOME FIRST U.S STATE TO BUY BITCOIN."
The bill, spearheaded by House Speaker Destin Hall and Representatives Mark Brody and Steve Ross, aims to diversify state investments by tapping into cryptocurrency.
Dan Spuller from the Blockchain Association highlighted that Hall is "one of NC’s most influential figures."
To put things in perspective, if North Carolina were to invest the full 10% permitted by this proposal, it could mean billions entering the digital currency markets, potentially allowing the purchase of tens of thousands of Bitcoins considering its current value of over $98,000 per coin.
Dan Spuller also tweeted:
"As promised, North Carolina’s Strategic Bitcoin Reserve legislation was introduced today. This is a big deal. Let me explain: 📜 HB 92 bill was personally introduced by House Speaker @DestinHall—one of NC’s most powerful leaders. Top of the food chain."
The Rising Role of Crypto in State Portfolios
North Carolina’s initiative reflects a broader movement across the United States, where more states see Bitcoin as a viable asset for investment.
States like Florida, Utah, and Texas have either proposed similar legislation or are exploring crypto investment strategies.
Part of the appeal lies in Bitcoin’s potential as a hedge against inflation and its growing institutional acceptance.
With Bitcoin’s market capitalization approaching $2 trillion, it’s becoming a more attractive option for institutional investors. If HB 92 passes, it could further legitimize the idea of state-level Bitcoin investments and accelerate similar efforts nationwide.
Pros, Cons, and Considerations
Advocates of this measure believe that investing in Bitcoin-backed ETPs could yield considerable returns and position North Carolina as a trailblazer in financial innovation. They point to Bitcoin’s impressive average annual growth of over 50% in the last decade as evidence of its potential.
However, not everyone is on board. Critics highlight Bitcoin’s volatility, the uncertain regulatory landscape, and the risks of tying public funds to digital assets. While Bitcoin has seen substantial growth, it has also faced steep declines, raising questions about financial stability.
Image courtesy of Gemini Imagen, chart by TradingView
