The bill proposes the creation of the North Carolina Investment Authority (NCIA), an independent body headed by the state treasurer, which would have the authority to invest up to 5% of various state funds in digital assets.
NCIA’s Role and Investment Strategy
Unlike some reports that suggest the bill is establishing a “Bitcoin reserve,” HB506 does not mandate the state to hold the cryptocurrency as a reserve asset. Instead, it follows a model similar to recent legislation in Florida, like House Bill 487 (HB487) and Senate Bill 550 (SB550), which authorized public funds to invest in BTC without setting mandatory reserve requirements.
Comparison with Other State Legislation
This approach contrasts with other state-level efforts to invest in Bitcoin. For instance, Texas Senate Bill 21 (SB21) directly establishes a state BTC reserve (SBR), while Minnesota’s SF2661 permits Bitcoin investment through state pension funds but does not allow direct state investment.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/north-carolina-proposes-bill-to-allow-state-investment-in-cryptocurrencies/