- North Carolina proposes investing 10% of its state treasury reserves into Bitcoin assets.
- The bill mandates secure cold storage, monthly audits, and strict Bitcoin sell limits.
- Supporters see Bitcoin as a hedge, while critics warn of risks from price volatility.
North Carolina lawmakers have introduced a legislative proposal that would allow the state to allocate a decent portion of its treasury reserves to Bitcoin. The Bitcoin Reserve Bill, designated as SB327, seeks to authorize the State Treasurer to invest up to 10% of public funds in Bitcoin. This potentially marks one of the largest government cryptocurrency allocations in the United States to date.
According to the bill, any Bitcoin purchased would be held in multi-signature cold storage. This approach reduces vulnerability to hacking or unauthorized access, addressing one of the primary concerns associated with digital asset custody. Transparency measures feature prominently in the proposal, with mandatory monthly audits required to provide reserve proof.
These regular verifications would allow public oversight of the state’s Bitcoin holdings, ensuring accountability for this new investment category. The bill also establishes strict limitations on liquidation. It also specifies that the Bitcoin reserves can only be sold under severe financial crisis conditions.
With North Carolina’s General Fund currently holding approximately $9.5 billion, the 10% allocation would represent a potential Bitcoin investment of up to $950 million. This substantial commitment shows growing confidence in cryptocurrency as a legitimate asset class among state officials and policymakers.
Earlier in March, Representative Stephen Ross, a Republican from Alamance County and co-sponsor of related House Bill 92, highlighted the changing investment sector during a House Commerce and Economic Development Committee meeting. “The whole investment field has changed over the last few years,” Ross stated. “Over the last ten years, this has gone mainstream.”
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This bipartisan support suggests a shifting perspective on cryptocurrency investments at the state government level. It has slowly moved beyond ideological divides toward practical assessments of financial diversification strategies. The North Carolina proposal follows similar initiatives in states like Texas, Utah, and New Hampshire, indicating a trend of state governments looking into Bitcoin as a treasury reserve asset.
The North Carolina proposal comes amid increasing interest in Bitcoin from both public and private institutions. Major corporations have already allocated portions of their treasury reserves to Bitcoin, while El Salvador became the first nation to adopt Bitcoin as legal tender in 2021. More recently, the approval of spot Bitcoin ETFs in the United States has created new pathways for institutional exposure to the asset.
