On June 28, 2023, the lower House of North Carolina’s legislature successfully passed a bill that directs the State’s Treasurer to conduct a comprehensive study on the potential advantages and viability of holding Bitcoin and gold bullion as part of the North Carolina administration’s portfolio.
The bill sets aside $50,000 for the study, which will evaluate various aspects, including the acquisition, secure storage, insurance, and liquidation of physical gold and virtual currency like Bitcoin.
The study aims to examine the potential benefits of incorporating gold and cryptocurrency holdings into North Carolina’s investment portfolio. It will assess whether these assets can act as a hedge against inflation and systemic credit risks, as well as whether they can mitigate volatility and enhance overall portfolio returns.
Moreover, the new bill considers establishing a state-administered depository for cryptocurrency, with North Carolina acting as the custodian for its digital asset holdings. Therefore, the study will also analyze the advantages and disadvantages of utilizing a privately managed depository or one from another state.
The bill received approval from the 120-member House through voting, with 73 members in favour, 40 against, and seven absent. However, it still needs to pass through the Senate and either become law or be vetoed by Governor Roy Cooper.
Meanwhile, North Carolina has taken a firm stance against central bank digital currencies (CBDCs), expressing concerns about potential public surveillance by government agencies. In May 2023, the state’s House of Representatives passed a bill limiting the use of CBDCs for payments to state agencies. The bill also includes a provision that prevents the US Federal Reserve from conducting any pilot CBDC testing in North Carolina.
Similarly, in March 2023, Senator Ted Cruz introduced a bill to prevent the Federal Reserve from launching a retail CBDC for direct consumer use. Cruz highlighted the importance of safeguarding financial privacy, preserving the supremacy of the dollar, and promoting innovation when formulating digital currency policies in the United States.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with Markets PRO, DeFi Planet’s suite of analytics tools.”
