Fastest News Updates around the World

North Carolina House Greenlights Bitcoin Ownership Investigation

52

- Advertisement -

The North Carolina State Assembly’s House of Representatives has approved a bill that proposes that the State Department’s treasurer conduct a study to assess the feasibility and potential benefits of integrating bitcoin into the state’s holdings.

The study aims to explore the potential impact of cryptocurrency and gold investments on North Carolina state funds if a portion of them were allocated to these assets.

A study of safe storage

The recently introduced bill, titled “State Precious Metals Deposit Study,” focuses on the safe storage, insurance, and liquidation of virtual currency on behalf of the state.

It has now advanced to the Senate for further deliberation, highlighting recognition of the growing importance of virtual currency, as defined by GS 53-208.42(20), and the proposal’s intent to assess its potential impact on the state’s fiscal strategy.

The study described in the bill aims to assess the expected benefits of allocating part of the public fund to virtual currency.

In doing so, the country seeks to mitigate inflation and systemic credit risk, reduce overall portfolio volatility, and enhance portfolio returns over time. This legislative effort reflects a proactive approach to understanding the benefits of virtual currency and its potential for harnessing it into the nation’s financial operations.

Dan Spauler, in a subsequent tweetHe emphasized that the move is just one of several pro-bitcoin initiatives the initiative has implemented in the country.

The language of the bill directly quoted from it highlights the expected impact of allocating a portion of the public account to a virtual currency. The goal is to hedge against inflation and systemic credit risk, reduce portfolio volatility, and enhance portfolio returns over the long term.

As part of the ongoing legislative process, a proposed study on integrating bitcoin into North Carolina’s holdings would also assess the advantages and disadvantages of using a “privately managed warehouse or other state custodian.”

The House of Representatives succeeded in passing the bill, with 73 members voting in favor, 40 against, and seven absent.

To become law or face a potential veto from Governor Roy Cooper, the bill now awaits Senate approval, marking the next crucial step in the legislative journey.

future impact

This is just one of the discussions going on in the US about cryptocurrencies.

Earlier on June 29, President Biden hinted at introducing crypto regulation and US Securities and Exchange Commission (SEC) Commissioner Hester Pierce, aka “Crypto Mom,” expressed her belief that cryptocurrency regulations in the US should be careful. It avoids treating technology only as a financial tool.

Regulations are becoming more important as regions such as Hong Kong and Europe continue to release their own regulatory guidance for the industry, giving companies more clarity on how they operate.

Leave a Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More