North Dakota Eyes Crypto for Treasury: Could Bitcoin Be Included?

• North Dakota joins New Hampshire in exploring crypto investments for state reserves, aiming to diversify assets and combat inflation.
• Bitcoin’s market dominance positions it as a prime candidate, while tech-neutral policies reduce political resistance in crypto legislation.

U.S state, North Dakota has stepped into the crypto limelight to modernize its treasury, joining New Hampshire in exploring legislation to incorporate Bitcoin and other digital assets into state reserves. Lawmakers are eyeing cryptocurrencies and precious metals to diversify investment strategies and combat economic pressures like inflation.

The recently proposed House Concurrent Resolution 3001 urges North Dakota’s State Treasurer and Investment Board to invest portions of key funds — including the general and legacy funds — in alternative assets. Advocates see this move as a hedge against inflation, though the resolution refrains from naming Bitcoin directly.

“The Legislative Assembly encourages the State Treasurer and State Investment Board to invest a portion of the state general fund, budget stabilization fund, and legacy fund in digital assets and precious metals,” the resolution states.

Bitcoin as the Top Candidate

While Bitcoin isn’t explicitly mentioned in the North Dakota proposal, its market dominance makes it the primary contender. Similar legislation introduced in New Hampshire stipulates only digital assets with a market cap exceeding $500 billion qualify for inclusion, effectively narrowing the field to Bitcoin.

Supporters believe this approach signals an embrace of Bitcoin as a secure financial instrument. Critics, however, question the omission of Bitcoin by name, suspecting it could leave room for less proven crypto assets.

Dennis Porter, a prominent supporter of Bitcoin-focused policies, justified the deliberate ambiguity, stating some states prefer technology-neutral legislation to minimize political resistance.

“Some states will require us to develop tech neutral bills which is very common in policy. It’s a way to reduce political friction. Some bills will be bitcoin exclusive, some will be based on market cap,” Porter explained.

Broader Trends in Bitcoin Reserves

North Dakota and New Hampshire aren’t alone in considering cryptocurrency reserves. States like Texas, Florida, Pennsylvania, and Alabama have explored similar measures. Experts suggest this trend is fueled by growing interest in Bitcoin’s potential to stabilize government finances in uncertain economic climates.

Currently, the United States holds 198,109 BTC, worth over $18.64 billion at press time, making it the world’s largest nation-state Bitcoin holder, according to Arkham. However, the Biden administration recently approved the liquidation of 69,370 BTC, valued at around $6.5 billion, seized from the Silk Road marketplace, we previously reported.

Aside from Bitcoin,  the U.S. Gov. holds 54.753K Ethereum and 122.131 million USDT at the price of $3,268.04 and $1.00 respectively.

The introduction of crypto-friendly legislation aligns with shifting political dynamics. President-elect Donald Trump has proposed establishing a national Bitcoin reserve, potentially signaling a more crypto-forward stance in federal policy.