The US state of North Carolina could invest up to 10% of public funds in Bitcoin and aims to build a strategic reserve and integrate cryptocurrencies as part of its financial strategy.
North Carolina Senate Bill 327 aims to invest 10% of public funds in Bitcoin
In North Carolina, lawmakers are considering Senate Bill 327, the North Carolina Bitcoin Reserve and Investment Act, to integrate Bitcoin into the state’s financial strategy. Introduced on March 19 by Senators Todd Johnson and Brad Overcash, with co-sponsorship from Senator Timothy Moffitt, the legislation aims to establish a strategic Bitcoin reserve. According to the bill’s text:
The objective of this bill is to create a strategic Bitcoin reserve for the state of North Carolina, promote Bitcoin investment as a financial innovation strategy, and position North Carolina as a leader in state cryptocurrency adoption.
If passed, the bill would authorize the State Treasurer to convert up to 10% of public funds into Bitcoin as a long-term investment asset. The bill outlines key management and security measures to protect the Bitcoin reserve. According to the proposal:
The Office of the State Treasurer is authorized to invest up to ten percent (10%) of public funds in Bitcoin (BTC) as part of the state’s long-term fiscal strategy.
“Bitcoin acquired with funds allocated pursuant to this section shall be placed in a reserve (Bitcoin Reserve). The Treasurer is authorized to invest in Bitcoin-backed investment strategies, including staking, lending, and other regulated income-generating activities,” the bill states. To ensure security, the reserve would be stored in cold wallets with multi-signature authentication, and a new department within the Treasurer’s Office would be responsible for oversight. The bill also requires monthly audits, insurance policies, and the formation of a Bitcoin Economic Advisory Council.
The bill also establishes strict guidelines for the acquisition and use of the reserve. It specifies:
Bitcoin acquisitions shall be made through strategic bulk purchases to take advantage of favorable market conditions. Bitcoin purchases should be conducted through regulated, U.S.-based cryptocurrency exchanges to ensure compliance with federal and state regulations.
“The Treasurer shall explore Bitcoin mining operations as a means of cost-effectively increasing government holdings,” the bill adds. Additionally, the bill restricts the use of the Bitcoin reserve and requires legislative approval for liquidation, except in cases of financial distress, investment strategies, or the financing of state-approved infrastructure projects. Transparency measures would include quarterly reports to the General Assembly and public disclosures. If signed into law, the bill would take effect immediately.
At the federal level, President Donald Trump signed an executive order creating a strategic Bitcoin reserve using government-confiscated Bitcoin. At the same time, lawmakers in both the Senate and House of Representatives have introduced bills to formally establish this reserve and propose the purchase of up to 1 million BTC over five years. At the state level, a growing number of states are exploring similar measures. Some states are aiming to invest a portion of their public funds directly in Bitcoin, while others are considering investing in Bitcoin-backed financial products or establishing strategic reserves.
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