North Carolina Bitcoin Reserve Bill Passes First Reading, Proposing to Allocate 10% of Public Funds to Bitcoin

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

The bill, sponsored primarily by Senators Johnson and Overcash, has core provisions authorizing 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 allocated from public funds must be stored in multi-signature cold wallets and managed by a dedicated state custodial department, aiming to build a comprehensive asset security protection system spanning from storage methods to management entities.

The bill grants the custodial department certain authorities, allowing it to conduct yield-generating activities within the regulatory framework, with common business operations like staking and lending falling within the permitted scope.

In this way, the custodial department can leverage these activities to create more revenue opportunities for relevant entities, while also enriching the modes and pathways of overall asset operations.

Additionally, the bill requires establishing a Bitcoin Economics Advisory Committee to provide professional guidance for reserve management and implementing a monthly audit system to ensure transparency and compliance in departmental reserve operations.

Should this proposal ultimately pass, North Carolina would become one of the first U.S. states to directly allocate public funds to bitcoin. While the bill has passed its first reading, it still requires multiple rounds of review going forward.

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