- State sees cryptocurrency investments as a method of hedging against inflation
- Lawmakers are also focusing on metal bullion
The North Carolina House of Representatives successfully voted for a bill to allow cryptocurrencies into the state treasury. Lawmakers decided to include virtual currencies in the bill during its consideration earlier this month, though the first version focused on metal bullion.
In all, the bill, called House Bill 721, received support from 73 voters, with another 40 opposed. It requires an investigation by the North Carolina Department of the Treasury into the acquisition, holding and use of investments related to metal bullion and virtual currencies, namely bitcoin.
In the event that House Bill 721 passes, the Treasury Department will consider investing in two types of assets. The paper writes that virtual assets and metal bars are being considered for “hedging against inflation and systemic credit risks, reducing overall portfolio volatility and increasing returns over time.”
North Carolina is not alone in showing interest in increasing the role of digital assets. Colorado legalized tax payments from cryptocurrencies last year, though the program is not yet widespread.
New York and Wyoming have also been leaders in cryptocurrency regulation. New York’s BitLicense program is expected to serve as a model for other states wishing to regulate exchanges and brokers, and the system could influence federal policy. In addition, Wyoming has adopted a unique cryptocurrency-friendly banking statute, which has attracted more companies to the state. Nevertheless, banks still have to deal with problems at the federal level.