North Carolina House of Representatives approved House Bell 721, which includes provisions for examining the potential acquisition and benefits of virtual currency, with a particular focus on Bitcoin. The bill, titled State Precious Metals Deposit Study, aims to examine the process of holding, insuring and liquidating virtual currency on behalf of the state. It has now been referred to the Senate for further study.
The legislation recognizes the growing importance of virtual currency, as defined by GS 53-208.42 (20), and proposes an assessment of its potential impact on a country’s fiscal strategy. The study described in the bill will analyze the expected benefits of allocating a portion of the public account to virtual currency, with the aim of hedging against inflation and systemic credit risks, reducing overall portfolio volatility, and increasing portfolio returns over time.
Language about the virtual currency study, including a specific reference to Bitcoin, was added after Dan Spoiler, head of industry affairs for the North Carolina Blockchain Initiative, said. to attest On behalf of the initiative before the Standing Committee of the North Carolina House of Representatives. spoiler, from highlighted in a subsequent tweet That this is one of the many pro-bitcoin impulses being made by the initiative in the country has received unanimous support in the language that has been added to the bill.
In addition to exploring the potential benefits of a virtual currency such as Bitcoin, the bill also stresses the importance of weighing the costs, benefits and security measures associated with various deposit options. The study will examine the feasibility of using a privately managed warehouse, a third-state depository, or establishing a state-run warehouse within North Carolina. The ultimate goal is to identify the most appropriate custodian, custodian, and administrator for virtual currency assets held by the state, its agencies, political subdivisions, or other instruments.
Quoting the bill directly, it states “the expected effect of allocating a portion of the public account to virtual currency to hedge against inflation and systemic credit risk, reduce overall portfolio volatility, and increase portfolio returns over time.”
The inclusion of virtual currency and bitcoin in the legislation shows North Carolina’s proactive approach to studying bitcoin and exploring its potential benefits.