North Carolina Takes the Leap:
"State Considers Investing Retirement Funds in Cryptocurrencies"
North Carolina is making a bold move into the world of cryptocurrencies, with lawmakers introducing twin bills that could allocate up to 5% of state retirement funds to digital assets like Bitcoin. The Investment Modernization Act (House Bill 506) and the State Investment Modernization Act (Senate Bill 709) aim to create an independent investment authority that will carefully select which cryptocurrencies are suitable for inclusion in the state's retirement funds.
This move recognizes the growing importance of digital assets in modern investment portfolios and provides residents with a new level of financial flexibility and potential for growth. The bills are broad in their definition of digital assets, encompassing not just cryptocurrencies but also stablecoins, non-fungible tokens (NFTs), and other electronic assets.
Notably, the bills don't impose market cap criteria on digital assets, setting them apart from other crypto bills being considered at the state level. This development is part of a larger trend, with several US states exploring the possibility of investing in cryptocurrencies.
In contrast, North Carolina's Senate Bill 327 proposes allocating up to 10% of public funds directly into Bitcoin, with the goal of leveraging Bitcoin investment as a "financial innovation strategy" to boost the state's economy. To ensure security, the bill requires Bitcoin to be stored in a multi-signature cold storage wallet, with liquidation only possible during severe financial crises and with approval from two-thirds of the General Assembly.
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