North Carolina’s Bitcoin Bet: A Bold Move or a Risky Gamble?

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The North Carolina House of Representatives has decided to throw caution to the wind and passed a bill to let the state play in the wild world of Bitcoin and other cryptocurrencies. House Bill 92, also known as the “Strategic Bitcoin Reserve,” got the green light on April 30, and you can bet that the ripple effects are already shaking up the state’s financial strategies.

So, why is this even a thing? Well, it’s part of a bigger trend sweeping across the United States. States are now jumping on the digital assets bandwagon like it’s the hottest new ride at the fair. Who needs traditional investments when you can throw your chips at digital currency, right?

Here Comes the Bitcoin Reserve Bill

House Bill 92 gives the state permission to create a reserve that’s all about digital assets, with a heavy focus on Bitcoin. This bill was ushered in by House Speaker Destin Hall, who’s all about pushing North Carolina’s investments into more “progressive” avenues. But hey, when your financial portfolio has been stuck in the past for so long, maybe it’s time to try something new.

The idea is simple: if the state has money to burn (or invest), it could start buying up Bitcoin, possibly giving North Carolina a chance to ride the wave of what’s being called an “emerging asset class.” The hope? A little hedge against inflation and some juicy returns down the line. Because who doesn’t want to have a little skin in the game with something that can swing in price more wildly than a roller coaster?

The “No Direct Bitcoin Buying” Rule

Of course, there are some ground rules to this digital gamble. No direct Bitcoin buying here, folks. Instead, the state will be investing in funds that deal with these tokens—think Bitcoin mutual funds. Why? Because critics like Rep. Maria Cervania (a Democrat from Wake County) are concerned about the crazy volatility of Bitcoin. A little less direct risk might be a good call when your budget’s on the line.

But on the flip side, Rep. Keith Kidwell’s all for shaking things up. “Just like a good investment broker would spread your portfolio around,” he says, “we need to diversify.” Oh, Keith, always the optimist. A little bit of Bitcoin, a little bit of stocks, a dash of gold… what’s the worst that could happen?

“In the same way that a good investment broker would do for you, we need to spread the allocation around,” he said.

The bill also opens up the possibility for the state to toss some of its pension funds into the crypto mix. Because why not risk the retirement funds of state employees on the whims of the market?

Pushback from the Naysayers

But not everyone’s drinking the Kool-Aid. Some lawmakers are less than thrilled about the state diving into the Bitcoin pool. They argue that this could put the state budget in a risky position. After all, who wants to tie up public funds in something as unpredictable as cryptocurrency?

Rep. Maria Cervania wasn’t shy about voicing her concerns. “I still have a lot of questions about this investment strategy and the level of commitment we’re making to it,” she said. Uh-oh. Sounds like someone’s not convinced.

“I still have a lot of questions about this investment strategy and the level of commitment we’re making to it,” she stated.

On the flip side, Governor Josh Stein’s got a thumbs-up for the bill. He’s optimistic about giving the state treasurer more control over investments, with analysts predicting that Bitcoin could rally to new highs. Because when you’re betting on the future, it’s always good to pick the long-shot winner, right?

Other States Getting in on the Crypto Craze

North Carolina isn’t alone in its Bitcoin love affair. Arizona’s set to become the first state to launch its own Bitcoin reserve system. Arizona’s all-in, baby, allowing up to 10% of public funds to be invested in Bitcoin and other digital assets. And that’s not all. Even cities like Roswell, New Mexico, are getting in on the action. This month, Roswell made Bitcoin an official reserve currency. Because who doesn’t want their city’s finances tied to something as stable as a hot-air balloon ride on a windy day?

But back to North Carolina. Even though House Bill 92 passed, it still has to get the green light from the Senate. And let’s not forget about the state’s pension system, which is still deep in the red—almost $16 billion in the hole. It’ll be interesting to see if this bold Bitcoin move can actually dig them out of it. Or if it just makes the hole bigger.

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2025-05-01 01:50