North Carolina Moves Forward with State-Controlled Bitcoin Reserve

North Carolina is taking steps to diversify its financial assets by introducing a bill to establish a state-controlled Bitcoin reserve. Senate Bill 327, also known as the North Carolina Bitcoin Reserve and Investment Act, would enable the Office of the State Treasurer to invest up to 10% of public funds in $BTC.

The proposed legislation has significant implications for the state's financial strategy. By allocating a portion of its assets into Bitcoin, North Carolina aims to promote financial innovation and establish itself as a leader in crypto adoption at the state level.

Under the proposal, the Treasurer would manage the reserve using cold storage wallets with multi-signature authentication. A new department within the Treasurer's office would take custody of the assets, ensuring state control. The bill also calls for a Bitcoin Economic Advisory Board to provide guidance and monthly audits to verify reserve balances, security, and performance.

The reserve would be used to support critical infrastructure projects, economic development initiatives, and research in the field of blockchain technology. Any liquidation of $BTC would require approval from at least two-thirds of both chambers of the General Assembly. The bill also allows the reserve to back bonds as an alternative financing tool for public projects.

North Carolina is not alone in exploring Bitcoin reserves as part of state treasury strategies. Several U.S. states have enacted or introduced similar legislation, reflecting a growing trend to use $BTC as a potential store-of-value hedge and diversify state financial assets.