North Carolina Bitcoin Reserve Bill Passes First Reading, Proposing 10% of Public Funds for Bitcoin Allocation

On March 20, according to the latest X post from Bitcoin Magazine, Bill No. 327 "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 by Senators Johnson and Overcash as primary initiators, has as its core content the authorization of the state treasurer to allocate up to 10% of public funds into Bitcoin as part of the state's long-term financial strategy.

To safeguard asset security, the bill requires that Bitcoin allocated from public funds must be stored in multi-signature cold wallets and managed by a dedicated in-state custodian department, aiming to establish a comprehensive asset security protection system covering everything 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 like staking and lending within the permitted scope.

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

Additionally, the bill also requires the establishment of a Bitcoin Economic Advisory Committee to provide professional guidance for reserve management, and implements a monthly audit system to ensure transparency and compliance of departmental reserve operations.

Should this proposal ultimately be passed, North Carolina will become one of the first states in the United States to directly allocate public funds to Bitcoin. Although the bill has passed its first reading, it still requires multiple rounds of review in the subsequent process.

#State-level Bitcoin Strategic Reserve