North Carolina is taking a bold step into the world of cryptocurrency with the Bitcoin Reserve and Investment Act (SB327). This bill, introduced in March 2025, allows the state to invest up to 10% of its public funds in Bitcoin. With a $9.5 billion budget currently, this move could change the way the state handles its finances.
North Carolina’s Bitcoin Bills Could Set a New Trend for States
If the bill passes, North Carolina might lead the way in using digital assets for public investment, inspiring other states to follow. Notably, North Carolina currently has two Bitcoin reserve bills awaiting passage in the House and Senate, respectively. This move is part of a broader plan to diversify the state’s financial reserves and take advantage of the increasing value and acceptance of digital currencies.
Led by Republican Senators Todd Johnson and Brad Overcash, the bill signals the state’s push to embrace crypto in banking. To ensure security, the Bitcoin holdings will be stored using multi-signature cold storage, which provides extra protection. The state will also conduct monthly audits to provide proof of reserve and maintain transparency in its holdings.
Bill Limits Bitcoin Sales to Severe Financial Crises
Additionally, the bill stipulates that Bitcoin can only be sold in cases of a severe financial crisis, and even then, strict conditions must be met. This approach aims to secure Bitcoin as part of the state’s financial strategy while limiting its use to critical situations.
As cryptocurrencies become more popular, states are looking to add digital assets to their financial portfolios, which could bring innovation and help taxpayers. However, Bitcoin’s volatility and unclear regulations pose significant risks alongside the potential rewards.
Nevertheless, this significant investment highlights the increasing interest of governments and institutions in digital assets as a store of value and a hedge against traditional financial risks. The bill aims to strike a balance between the advantages of Bitcoin investment and the need for strong security and oversight, setting an example for other states considering similar actions.
