TLDR
- NC lawmakers propose a state Bitcoin reserve for up to 10% of funds.
- Treasury would manage BTC using cold storage and strict multi-sig oversight.
- Fund use limited to crises or approved projects, with legislative approval.
- Advisory board, audits, and public reporting ensure transparency and security.
- NC joins TX, NH, and AZ in exploring state-level Bitcoin investment.
North Carolina lawmakers introduced legislation to create a state Bitcoin reserve for public funds. Senate Bill 327 proposes allocating up to 10% of state funds into Bitcoin. The bill aims to position North Carolina as a leader in state-level digital finance.
The Bitcoin reserve would be managed by the Office of the State Treasurer using secure cold storage wallets. A specialized division would oversee custody and daily operations. Governance measures include multi-signature authentication and strict auditing processes.
Lawmakers intend the Bitcoin reserve to support long-term state financial strategy. The reserve could be used for critical infrastructure projects and approved investment strategies. Treasury officials would provide quarterly reports to ensure transparency and accountability.
Bill Framework and Legislative Progress
Senate Bill 327, known as the North Carolina Bitcoin Reserve and Investment Act, passed its first Senate reading. The legislation was referred to the Rules and Operations Committee for further review. If enacted, the bill would formally authorize the creation of a state Bitcoin reserve.
The bill allows the State Treasurer to acquire Bitcoin through regulated U.S. exchanges. Bulk purchases would be timed to maximize market efficiency and increase state holdings. The proposal also encourages exploring Bitcoin mining as a potential revenue source for the reserve.
Lawmakers included strict restrictions on the Bitcoin reserve’s use. Funds could only be deployed during financial crises or for projects approved by the General Assembly. Any liquidation of Bitcoin requires two-thirds approval from both legislative chambers to prevent misuse.
Governance, Oversight and U.S. Context
The Bitcoin reserve would have a dedicated advisory board of industry experts. Monthly audits would verify balances, performance, and security of the state’s digital assets. Reports would also be publicly available on the Treasurer’s website for accountability.
The reserve could back bonds as an alternative financing mechanism for state projects. The bill also allows expenditures for Bitcoin-related research, education, and economic incentives. These measures aim to strengthen North Carolina’s position in digital asset adoption nationwide.
Several other U.S. states have already explored similar Bitcoin reserves. Texas, New Hampshire and Arizona have implemented legislation for partial public fund allocation into Bitcoin. Other states, including Illinois and Michigan, have proposed bills reflecting growing interest in state-level digital asset management.
North Carolina’s initiative signals a broader trend toward integrating Bitcoin into public finance. The bill highlights the state’s effort to diversify financial reserves and leverage cryptocurrency as a long-term store of value. The Bitcoin reserve could become a model for other states considering digital asset strategies.
