North Carolina Bitcoin Reserve Bill Passes First Reading, Proposes Allocating 10% of Public Funds to Bitcoin

On March 20, according to the latest X post from Bitcoin Magazine, Bill No. 327 proposed by North Carolina, titled "North Carolina Bitcoin Reserve and Investment Act," officially passed its first reading on March 19.

The bill, sponsored by Senator Johnson and Overcash as primary initiators, authorizes the state treasurer to allocate up to 10% of public funds into Bitcoin as part of the state's long-term financial strategy.

To ensure asset security, the bill requires that Bitcoin acquired with public funds must be stored in multi-signature cold wallets, with a dedicated state custodian department established to manage them. This aims to build a robust asset security protection system covering all aspects from storage methods to management entities.

The bill grants the custodian department certain authority, allowing it to conduct yield-generating activities within the regulatory framework, with common business operations such as staking and lending permitted within the authorized scope.

In this way, the custodian department can leverage these activities to create more revenue opportunities for relevant entities, while also enriching the operational models and pathways for overall asset management.

Additionally, the bill also requires establishing a Bitcoin Economic Advisory Committee to provide professional guidance for reserve management and implementing a monthly audit system to ensure transparency and regulatory compliance of the department's reserve operations.

Should this proposal ultimately pass, North Carolina will become one of the first U.S. states to directly allocate public funds to Bitcoin. Although the bill has passed its first reading, it will require multiple rounds of review in subsequent procedures.

#State-Level Bitcoin Strategic Reserve