A bill by the North Carolina Treasurer to study the feasibility and benefits of holding Bitcoin (BTC) in the state has passed the lower house of the state’s legislature.
On June 28, the House of Representatives passed bill The project will commission a $50,000 study to examine the “acquisition, safe storage, insurance and liquidation” of gold bars and “virtual currencies such as bitcoin (…)”.
The study will examine what would happen to gold and cryptocurrency holdings if North Carolina held some of its funds in cryptocurrencies and gold.
Specifically, it will examine whether such holdings can be a hedge against inflation and “systemic credit risk,” and whether gold and cryptocurrencies can reduce volatility and increase returns on their portfolios.
other #bipartisan Passing of HB721 Takes Victory in North Carolina | #bitcoin/#Digital Assets/Guardianship Studies Act
– Passed 75-38
-Republicans + Democrats come together
– mentoring/funding @NCTreasurer benefits of research #BTC + #custody
– led by @NC_Blockchain + @SoundMoneyDef— Dan Spuller (@DanSpuller) June 28, 2023
The bill contemplates the creation of a state-managed cryptocurrency custodian, considering North Carolina as the custodian for its virtual asset holdings.
However, the study will examine the costs and benefits of using “privately managed depository institutions or depository institutions in other countries”.
House of Representatives 120 people passed The bill had 73 votes in favor, 40 against, and 7 abstentions.
The bill must pass the Senate before it can be signed into law or vetoed by Gov. Roy Cooper.
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On May 3, the North Carolina House of Representatives unanimously passed a bill banning central bank digital currency (CBDC) payments to the state.
The bill states that the Federal Reserve would also be prohibited from using North Carolina to test any future CBDC pilots.
A day earlier, on May 2, the Buncombe County Board of Commissioners in North Carolina passed a one-year moratorium on cryptocurrency mining.
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