• The North Carolina House of Representatives passed a bill that includes provisions to investigate the acquisition and potential benefits of Bitcoin and other cryptocurrencies.
• The bill is commissioning a $50,000 study for analyzing the expected benefits of deploying a chunk of the General Fund to digital assets.
• The bill would also research if such a holding by the state would help in slashing overall portfolio volatility and increasing portfolio returns over time.
North Carolina House Investigating Benefits of Holding Bitcoin
The North Carolina House of Representatives has recently passed a bill that seeks to investigate the potential benefits of holding Bitcoin and other cryptocurrencies as an alternative to traditional fiat currencies. The legislation, titled “State Precious Metals Depository Study,” received 73 votes in favor, 40 against, while seven participants were absent. It has now been referred to the Senate for further consideration.
$50K Allocated To Study Benefits Of Holding Bitcoin
House Bill 721 is commissioning a $50,000 study for analyzing the expected benefits of deploying a chunk of the General Fund into digital assets such as Bitcoin. This move aims to hedge against inflation and systemic credit risks as well as reduce overall portfolio volatility by increasing portfolio returns over time.
Factors To Be Examined By The Study
In order to assess whether this move would be beneficial or not, various factors such as costs, benefits, and security measures related to different depository options must be examined. This includes researching into the feasibility of leveraging a privately managed depository or another state’s depository or setting up an independent State-administered depository.
Potential Impact Of A State Cryptocurrency Holding
Along with exploring the potential impacts on having an official state cryptocurrency holding ,the study will also look into whether it could have any negative consequences on citizens who are already financially vulnerable due to existing economic conditions.
Final Consideration By The Senate
After being referred from the House, this bill needs final consideration from the Senate before it can become law . If signed off ,it will pave way for North Carolina to become one among many states that are currently exploring how cryptocurrency can be used effectively in their financial systems .