North Carolina Proposes 10% of Public Funds for Bitcoin Reserve

North Carolina has taken a significant step towards embracing cryptocurrency by introducing Senate Bill 327 (SB327). This bill proposes that up to 10% of the state's public funds be allocated to Bitcoin as a reserve asset. If approved, North Carolina would become a pioneer in state-level cryptocurrency adoption. The bill, introduced by Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt, includes provisions for the secure storage of acquired Bitcoin in multi-signature cold storage, with monthly audits to ensure transparency and security.

One of the most notable aspects of SB327 is its proposal for state-backed Bitcoin mining operations. By mining Bitcoin directly, North Carolina could accumulate digital assets without relying solely on market purchases. This approach could potentially reduce costs and create a new revenue stream for the state. This initiative aligns with broader efforts by other U.S. states to integrate cryptocurrency into public finance, with states like Arizona and Texas also pursuing similar strategies.

The legislation also establishes a Bitcoin Economic Advisory Board. This board would provide ongoing guidance on Bitcoin reserves and mining initiatives. Any sale of state-held Bitcoin would require approval from two-thirds of the General Assembly, ensuring strict oversight. This measure is part of a broader trend in the U.S., where states are exploring Bitcoin-related legislation and the potential for a national Bitcoin reserve.

If passed, SB327 could position North Carolina as a national leader in Bitcoin adoption and mining. The bill comes at a time when other states, including Texas, Utah, and Arizona, are also exploring Bitcoin-related legislation. Senator Ted Cruz, for instance, is championing Texas as a global hub for Bitcoin innovation, aligning the state’s resources with the growing digital asset industry. With three Bitcoin mining facilities in West Texas, Cruz is merging advocacy with action.

The introduction of SB327 reflects a growing interest in cryptocurrency as a strategic reserve asset. By allocating a significant portion of public funds to Bitcoin, North Carolina aims to improve its financial strategy and foster greater crypto adoption. The bill's provisions for secure storage, regular audits, and strict oversight demonstrate a commitment to responsible management of digital assets. This move could set a precedent for other states considering similar initiatives, highlighting the potential benefits of integrating cryptocurrency into public finance.