North Carolina legislators have taken a significant step toward diversifying the state’s financial holdings by passing a bill that proposes a study on digital assets and precious metals.
The bill, known as the “State Precious Metals Depository Study,” has been approved by the state’s House of Representatives and now moves to the Senate for consideration.
If it becomes law, North Carolina could explore the potential benefits of incorporating Bitcoin and gold into its state treasury.
State Representative Mark Brody, the bill’s sponsor, emphasized the need to protect North Carolina’s assets in the face of ongoing currency devaluation by the U.S. government.
By studying the feasibility of holding digital assets and precious metals, the state aims to hedge against inflation, reduce portfolio volatility, and potentially achieve better long-term returns.
The bill also highlights the consideration of systematic credit risks as a driving factor for investing in Bitcoin and gold.
The proposed study would investigate various aspects related to acquiring, securely holding, and liquidating digital assets and precious metals.
Additionally, it would explore the possibility of establishing a state-administered institution to custody assets such as Bitcoin and gold.
The inclusion of digital assets in the bill was influenced by discussions with industry experts, including Dan Spuller from the Blockchain Association, who advocated for their consideration.
The bill received support from the majority of Republican members, as well as a small number of Democrats. However, a significant portion of Democrats opposed the initiative, highlighting differing opinions on the subject. Despite the divided opinions, the bill passed in the House, setting aside $50,000 for the study.
If the bill is approved by the Senate and signed into law by Governor Roy Cooper, the study’s findings and policy recommendations will be reported to the state’s Joint Legislative Commission on Governmental Operations in early 2023.
This research will provide valuable insights into the potential benefits and risks associated with incorporating Bitcoin and gold into North Carolina’s state treasury.