The Intricacies of the Proposed Bill
The bill that has been passed in the lower house of North Carolina’s General Assembly aims to commission a $50,000 study. The purpose of this study would be to understand the potentialities, and the intricacies of “acquiring, securely storing, insuring, and liquidating” both gold bullion and “virtual currency […] such as Bitcoin.”
The Economic Impact of Holding Cryptocurrency and Gold
The study would explore the economic impact that holding gold and cryptocurrency might have on North Carolina’s financial portfolio. It would scrutinize the potential of these assets to act as a hedge against inflation and systemic credit risks, and whether they could help mitigate volatility, thereby enhancing the state’s portfolio returns.
Exploring Options for Digital Currency Custody
The bill also considers the establishment of a state-administered depository for cryptocurrency, with North Carolina functioning as the custodian of its digital asset holdings. However, the study would also investigate the feasibility and benefits of utilizing a privately managed depository or a depository owned by another state.
The Vote Tally and the Road Ahead
The 120-member House gave the nod to the bill, with 73 representatives voting in favor, 40 against, and seven absentees. The bill now needs the Senate’s approval before it can be signed into law or vetoed by Governor Roy Cooper.
Other Related Legislative Developments
In addition to this bill, there have been other recent crypto-related legislative developments in North Carolina. On May 3, the House unanimously passed a bill that would bar payments to the state using a central bank digital currency (CBDC). The bill also prohibited the US Federal Reserve from using North Carolina as a testing ground for future CBDC pilots. Just a day earlier, a one-year moratorium on crypto mining was imposed by the Board of Commissioners for Buncombe County in North Carolina.
