North Carolina lawmakers have introduced a bold proposal that could see the state invest nearly $1 billion in Bitcoin. The NC Bitcoin Reserve and Investment Act (SB327), sponsored by Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, seeks to allocate up to 10% of the state’s $9.5 billion general fund into Bitcoin. If passed, this initiative would establish one of the first state-backed Bitcoin reserves in the U.S.
How the Reserve Would Work
The bill mandates that Bitcoin purchases be made through regulated U.S. cryptocurrency exchanges, with all holdings stored in multi-signature cold wallets for security. Additionally, the State Treasurer would oversee the reserve, conducting monthly audits to ensure transparency. The bill also leaves room for North Carolina to explore Bitcoin mining operations as a way to increase the state’s holdings.
Restrictions on Bitcoin Use
The Bitcoin reserve would not be freely spendable. Any liquidation would require approval from two-thirds of both legislative chambers. The bill outlines specific cases where Bitcoin funds could be used, such as:
- Responding to financial crises
- Funding critical infrastructure
- Supporting Bitcoin-related research and education
- Providing collateral for public project bonds
A Bitcoin Economic Advisory Board made up of industry experts would guide the initiative, while the Treasurer would issue quarterly reports on the reserve’s status.
A Growing Push for State Bitcoin Reserves
This is North Carolina’s second legislative attempt to establish a Bitcoin investment strategy. Last month, a similar bill, the NC Digital Assets Investments Act (HB92), proposed investing 10% of state funds into digital assets with a market cap exceeding $750 billion. The bill successfully passed its first reading and is currently under committee review.
A Smart Hedge or Risky Bet?
With growing institutional interest in Bitcoin, this bill reflects a broader shift toward mainstream acceptance of digital assets. Supporters argue that adding Bitcoin to the state’s portfolio could serve as a hedge against inflation and economic instability. However, critics warn of market volatility risks, questioning whether such a move is financially prudent for public funds.
Regardless of the outcome, North Carolina’s efforts highlight the increasing role of Bitcoin in traditional finance. As more states and institutions explore cryptocurrency investments, the debate over Bitcoin’s place in government reserves is only just beginning.
📌 This article is for informational purposes only and should not be considered investment advice.
