North Carolina to Invest $50K in Bitcoin: Study Benefits of Holding Crypto

• The North Carolina House of Representatives has passed a bill that includes provisions to investigate the acquisition and potential benefits of Bitcoin and other cryptocurrencies.
• House Bill 721 titled “State Precious Metals Depository Study,” aims to examine the potential impact of a state securely holding, insuring, and liquidating virtual currency, with special emphasis on Bitcoin.
• The bill is commissioning a $50,000 study for analyzing the expected benefits of deploying a chunk of the General Fund to digital assets, positioning to hedge against inflation and systemic credit risks.

North Carolina House Passes Bill for Crypto Research

The North Carolina House of Representatives has passed a bill that includes provisions to investigate the acquisition and potential benefits of Bitcoin and other cryptocurrencies. House Bill 721 titled “State Precious Metals Depository Study” aims to examine the potential impact of a state securely holding, insuring, and liquidating virtual currency with special emphasis on Bitcoin.

$50K Study Commissioned

The bill is commissioning a $50,000 study for analyzing the expected benefits of deploying a chunk of the General Fund to digital assets such as Bitcoin in order to hedge against inflation and systemic credit risks. It would also research if such an investment by the state would help in slashing overall portfolio volatility and increasing portfolio returns over time.

Exploring Benefits & Factors

Besides exploring the benefits that could be brought by investing in cryptocurrency assets, this bill also highlights other factors that need assessing such as costs, benefits, security measures related to different depository options as well as examining feasibility regarding leveraging privately managed or another state’s depository or setting up one administered by State itself.

Bill Referred To Senate For Consideration

The legislation received 73 votes in favor while 40 voted against it with seven participants being absent from voting session. It has now been referred to Senate for further consideration.

Conclusion

This study intends to provide an insight into how investments made in crypto-assets can benefit North Carolina in terms of hedging against inflationary risks as well as reducing overall portfolio volatility while increasing returns over time.