A significant legislative proposal in North Carolina, titled the "Bitcoin Reserve and Investment Act" (Senate Bill 327), aims to allocate a portion of the state's public funds directly into Bitcoin. The bill proposes that the State Treasurer be authorized to invest up to 10% of public funds into Bitcoin, positioning North Carolina as a leader in state-level financial innovation and creating a long-term strategic reserve.
The bill details a comprehensive framework for security and governance. Purchased Bitcoin would be stored in cold wallets under multi-signature protection. A specialized division within the Office of the State Treasurer would manage custody and daily operations. The legislation mandates monthly audits to verify the reserve's status, security, and financial performance, with quarterly reports provided to ensure transparency.
Furthermore, the bill proposes establishing a dedicated "Economic Advisory Board" composed of industry experts to guide the state's Bitcoin strategy. Strict restrictions are placed on the reserve's use: funds could only be deployed during financial crises or for projects approved by the General Assembly. Any liquidation of Bitcoin would require a two-thirds approval from both legislative chambers.
The bill has passed its first Senate reading and was referred to the Rules and Operations Committee for further review. If enacted, it would allow the State Treasurer to acquire Bitcoin through regulated U.S. exchanges, with bulk purchases timed for market efficiency. The proposal also encourages exploring Bitcoin mining as a potential revenue source for the reserve and allows the reserve to back bonds for state projects.
North Carolina joins a growing trend among U.S. states, including Texas, New Hampshire, and Arizona, which have explored or implemented similar legislation for partial public fund allocation into Bitcoin.
