North Carolina is considering a big move: investing public money in Bitcoin. A new bill, HB 92 (the “NC Digital Assets Investments Act”), would let the state treasurer put up to 10% of state funds into Bitcoin exchange-traded products (ETPs).
A Bold Move: 10% of the Budget?
This isn’t chump change. We’re talking potentially billions of dollars flowing into the crypto market if North Carolina invests the full 10%. With Bitcoin’s current price, that could mean tens of thousands of Bitcoins. House Speaker Destin Hall, along with Representatives Mark Brody and Steve Ross, are pushing this bill, which aims to diversify the state’s investments. Dan Spuller, from the Blockchain Association, points out that Hall is a very influential figure in North Carolina politics.
The Growing Crypto Trend
North Carolina isn’t alone. Other states like Florida, Utah, and Texas are also looking into Bitcoin investments. Why the interest? Bitcoin is seen by some as a hedge against inflation and is gaining more acceptance among big investors. Its market cap is nearing $2 trillion, making it a more serious contender for institutional portfolios. If HB 92 passes, it could really boost the idea of states investing in Bitcoin.
The Upsides and Downsides
Supporters say a Bitcoin investment could bring big returns and make North Carolina a leader in financial innovation. They point to Bitcoin’s impressive historical growth (over 50% average annual growth over the last decade).
But it’s not all sunshine and rainbows. Critics worry about Bitcoin’s volatility. Its price can swing wildly, raising concerns about the financial stability of the state. Plus, there are still a lot of regulatory unknowns surrounding crypto. The risks of tying public funds to such a volatile asset are significant.
