North Carolina is making a notable advancement towards the incorporation of Bitcoin into its fiscal strategy. A newly proposed bill intends to authorize the state treasurer to distribute a fraction of public funds to digital assets, particularly focusing on BTC exchange-traded products (ETPs).
As a result of this initiative, North Carolina has emerged as the 20th state in the United States to explore legislation related to Bitcoin reserves.
10% Of Budget To Bitcoin Investments
The purpose of House Bill 92 (HB 92), also recognized as the “NC Digital Assets Investments Act,” is to authorize the state treasurer to invest up to 10% of state-managed funds into crypto-supported ETPs.
BREAKING:
🇺🇸NORTH CAROLINA ANNOUNCES STRATEGIC BITCOIN RESERVE BILL.
IT AIMS TO BE THE FIRST U.S. STATE TO ACQUIRE BITCOIN. pic.twitter.com/5uWD1xw0tx
— CryptoJack (@cryptojack) February 11, 2025
House Speaker Destin Hall, along with Representatives Mark Brody and Steve Ross, put forth the proposal, which aims to diversify the state’s investments by incorporating cryptocurrency exposure.
As per Dan Spuller, chief of Industry Affairs at Blockchain Association, Hall stands as “one of NC’s most influential leaders.”
To provide perspective, the opportunity for billions of dollars to flow into the digital currency markets if North Carolina were to fully allocate the available 10% of its funds is substantial. This allocation could lead to the acquisition of tens of thousands of BTC, given that the leading coin’s current price is around $98,000+.
As promised, North Carolina’s Strategic Bitcoin Reserve legislation was introduced today.
This is significant. Allow me to explain:
📜 The HB 92 bill was personally presented by House Speaker @DestinHall—one of NC’s most powerful leaders. Top of the hierarchy.
It will directly… pic.twitter.com/QtS6Kj8CKu
— Dan Spuller (@DanSpuller) February 10, 2025
The Rising Influence Of Crypto In State Investments
North Carolina’s initiative reflects a broader trend across the United States, where states are increasingly endorsing Bitcoin as a legitimate investment asset.
Other states, including Florida, Utah, and Texas, have either initiated similar legislation or are currently exploring crypto investment strategies.
BTCUSD trading at $98,011 on the daily chart: TradingView.com
Several key factors contributing to the increasing interest are Bitcoin’s capability to act as a hedge against inflation and its growing institutional acceptance.
Bitcoin is now regarded as a more feasible option for institutional portfolios due to its market capitalization approaching $2 trillion. The enactment of HB 92 in North Carolina could further validate state-level Bitcoin investments and accelerate similar efforts nationwide.
Possible Benefits And Challenges
Advocates of the proposal argue that investing in Bitcoin-backed ETPs could yield significant returns and position North Carolina as a pioneer in financial innovation.
Supporters also highlight the historical performance of crypto, which has seen an average annual growth rate exceeding 50% over the past ten years.
However, not everyone concurs. Detractors cite Bitcoin’s volatility, regulatory ambiguities, and the risks tied to linking public funds to digital assets. In recent years, BTC has seen a drastic rise, but it has also undergone substantial downturns, raising concerns regarding financial stability.
Featured image from Gemini Imagen, chart from TradingView
