North Carolina lawmakers presented legislation to establish a Bitcoin Reserve controlled by the State on Wednesday.
Senate Bill 327 is titled “The North Carolina Bitcoin Reserve and Investment ActThe Office of the State Treasurer would be able to invest up to 10 percent of the State’s public money in BTC, as part of the State’s financial long-term plan.
Sponsored by Senators Johnson, Overcash passed The bill was passed in its first Senate hearing and referred to Rules and Operations Committee. Goals include creating a Strategic Bitcoin Reserve; promoting BTC and establishing North Carolina’s position as a state leader for crypto adoption.
According to the proposal, Treasurers would be managing the reserves using multi-signature wallets for cold storage.
New department in the Treasurer’s Office would assume custody, thus ensuring control by the state. Bill also requires a Bitcoin Economic Advisory Board made up of industry experts who will provide advice and conduct audits every month to check reserve balances and security.
Bitcoins would only be purchased through U.S. based exchanges and in bulk to maximize the market. This bill directs that the Treasurer explore BTC mining Operations as a possible method of increasing state holdings.
Reserves would only be available in extreme financial crises and approved investment strategies. They could also fund critical infrastructure, economic development and research projects related to Bitcoin.
Liquidation of BTC will require the approval of at least 2/3 of both chambers. This bill permits the Reserve to issue bonds in order to finance public projects.
The Treasurer will submit quarterly reports detailing the status, value and performance of the Reserve to the General Assembly.
According to the text of the bill, reports would be made public on the Treasurer’s website. This bill encourages the advocacy of federal regulations that favor Bitcoin and includes provisions on complying with federal and State laws regarding holding cryptocurrency, taxation, and compliance.
U.S. States want Bitcoin
Many U.S. States are exploring Or have adopted BTC reserves in their state Treasury strategies.
Texas, New Hampshire, Arizona, Maryland, Iowa and Kentucky have all passed legislation allowing state funds be allocated for Bitcoin. have introduced Legislation proposing similar reserve.
Wyoming, Montana and Florida proposals have been rejected or stalled. The efforts are part of a larger trend that states have been using BTC for a hedge against inflation and to diversify their financial assets.
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Source: bitcoinmagazine.com
