Key Points
- North Carolina is considering a 10% Bitcoin reserve as part of its state funds.
- The proposal, HB 92, would also use Bitcoin in state-managed funds such as pensions and insurance.
North Carolina has revealed plans to potentially include Bitcoin in its state reserves, making it the 19th state in the US to consider such a move.
The proposed legislation, known as House Bill 92 (HB 92), was put forward by House Speaker Rep. Destin Hall, alongside Representatives Mark Brody and Steve Ross, both of whom are supporters of Bitcoin.
North Carolina’s Bitcoin Investment Strategy
According to HB 92, North Carolina could allocate up to 10% of its state funds into exchange-traded products linked to digital assets with a market capitalization above $750 billion. Currently, only Bitcoin fits this description, with a market cap of approximately $1.93 trillion.
The legislation also suggests utilizing Bitcoin in state-managed funds such as teachers’ and state employees’ pensions, insurance funds, and veterans’ home trust funds.
Rep. Hall is optimistic about the potential economic impact of the proposed bill. He stated, “Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption and innovation.”
Industry Reactions and Other State Initiatives
Dan Spuller, Head of Industry Affairs at the Blockchain Association, shared the news on social media, highlighting that North Carolina’s proposal is being taken very seriously. He noted that many similar bills in other states have not made it to the state house.
In contrast to other jurisdictions where proposals have stalled, Utah has recently made significant progress in this area. Last week, the Utah House of Representatives passed the “Strategic Bitcoin Reserve” bill (HB 230), introduced by State Representative Jordan Teuscher. The bill, which proposes dedicating up to 5% of the state’s reserves to Bitcoin and other cryptocurrencies, now awaits a Senate vote and the governor’s approval to become law.
The push to incorporate Bitcoin into strategic reserves aligns with national discussions on digital assets. During his campaign, US President Donald Trump announced plans to add Bitcoin to national reserves and issued an executive order post-inauguration encouraging his administration to explore the idea of stockpiling crypto assets.
Outside of the United States, the Czech Republic is also considering allocating a significant part of its national reserve to Bitcoin investment. If successful, the country’s central bank would become the first in the world to integrate Bitcoin into its portfolio.
