North Carolina Lawmakers Push to Invest Public Funds in Bitcoin with New Bill

Lawmakers in North Carolina have introduced a bill that could integrate Bitcoin into the state’s financial framework.

Specifically, the proposal would allow a portion of public funds to be invested in Bitcoin. The move is part of an effort to modernize financial management and explore digital assets as a long-term store of value.

If adopted, the move would position North Carolina among a growing number of states that are reconsidering traditional asset allocation models.

Key Points

• North Carolina lawmakers have introduced Senate Bill 327, aiming to allow the State Treasurer to invest in Bitcoin.
• Under the bill, up to 10% of public funds could be invested, with strict rules governing its use and liquidation.
• Governance measures include oversight by a specialized Treasurer division and a Bitcoin Economic Advisory Board to ensure security and accountability.
• Bitcoin could potentially be used to support public projects, back bonds, and fund economic development initiatives.

Bill Framework and Legislative Progress

The proposal, known as the North Carolina Bitcoin Reserve and Investment Act, has been filed as Senate Bill 327. It comes with the support of Senators Brad Overcash and Todd Johnson.

Notably, the bill has already passed its first reading in the state Senate and now awaits review by the Rules and Operations Committee. If it advances, the legislation would authorize the State Treasurer to allocate up to 10% of public funds into Bitcoin.

How the Bitcoin Reserve Would Operate

Under the framework, the Treasurer’s office would assume direct control of the reserve, providing unified oversight. Additionally, Bitcoin funds would be secured in offline wallets that require multiple signatures for access.

Furthermore, the bill calls for the creation of a specialized division within the Treasurer’s office to oversee custody and day-to-day management of the assets.

To strengthen accountability, a Bitcoin Economic Advisory Board would be established. This means that a panel of industry experts would provide strategic guidance and conduct monthly audits to review balances, system integrity, and overall performance.

Acquisition Strategy and Usage Limits

Alongside governance measures, the legislation outlines a structured approach to acquiring and managing Bitcoin. Purchases will take place on authorized U.S. exchanges, with timing aimed at maximizing market opportunities. The legislation also supports bulk-buying strategies.

In addition, the Treasurer is directed to explore Bitcoin mining as a potential way to expand state holdings over time.

Despite these investment plans, strict limits would govern the use of the reserve. Funds could only be deployed during periods of significant financial strain, for sanctioned investment opportunities, or to support public works and initiatives that promote economic growth.

The proposal also allows expenditures for research, educational programs, and business initiatives related to Bitcoin.

Strict Controls on Liquidation and Transparency

At the same time, the bill introduces significant safeguards around liquidation. For instance, disposal of any Bitcoin assets is contingent upon receiving approval from two-thirds of members in both legislative chambers.

Beyond serving as a reserve asset, the Bitcoin holdings could also be used to back bonds, thereby offering an alternative financing mechanism for public projects.

To ensure transparency, the Treasurer would be required to publish quarterly reports detailing the reserve’s value, status, and performance. These reports would be publicly accessible online.

Part of a Broader U.S. Trend

In a broader context, North Carolina’s proposal reflects a wider national trend toward exploring Bitcoin as a component of public finance. States such as Texas, Arizona, and New Hampshire have already taken steps in this direction.

Meanwhile, similar proposals are under consideration in Illinois and Michigan, with ongoing reviews in Pennsylvania and Utah. However, efforts in Florida and Montana have stalled.

Taken together, these developments highlight a growing interest among states in diversifying financial reserves and also considering Bitcoin as a potential hedge against economic uncertainty.