North Carolina’s Journey to Financial Independence: The Importance of a Bitcoin Reserve
On January 23, the President implemented an executive order to establish an internal task force focused on positioning the United States as a global leader in cryptocurrencies. With a keen interest in financial innovation and entrepreneurship within North Carolina, I firmly believe that now is the opportune moment for our state to pioneer an economic shift through the establishment of a Bitcoin reserve.
North Carolina prides itself on a legacy of courage and foresight. In 1776, the state boldly declared independence before the rest of the nation, and today, we have the chance to set a new standard for financial autonomy in the digital realm. Despite being a significant player in powering the global Bitcoin network through mountain quartz in Spruce Pine, North Carolina has yet to seize a leading role in incorporating Bitcoin.
The once-niche asset of Bitcoin has evolved significantly over time, gaining legitimacy in traditional finance with the approval of spot Bitcoin ETFs by the SEC. Notably, BlackRock, a major institutional player, has allocated billions into Bitcoin since January 2024, underlining the asset’s credibility. The alignment of Washington with the digital asset economy is evident through initiatives like the SEC’s crypto taskforce and Treasury Secretary Scott Bessent’s supportive stance on cryptocurrencies.
The momentum towards Bitcoin’s mainstream acceptance is undeniable. North Carolina is already positioning itself for this transition with the introduction of crucial legislation. The NC Digital Assets Investments Act, also known as House Bill 92, introduced by Speaker Hall and co-sponsored by representatives Brody and Ross, grants the state treasurer the authority to invest public funds in digital assets under strict guidelines. The bill outlines specific criteria for eligible digital assets, ensuring security and financial responsibility.
Under House Bill 92, only exchange-traded digital assets with a minimum market capitalization of $750 billion are eligible for investment, and Bitcoin, currently meeting these requirements, stands as the primary candidate. State reserves, pension funds, and the Highway Trust Fund will be subject to a 10% investment cap, offering North Carolinians the potential benefits of a $13.7 billion Bitcoin investment.
Beyond legislative efforts, North Carolina should move towards accepting digital asset payments for government services and taxes, limited to assets meeting the standards stipulated by House Bill 92. This forward-thinking approach not only modernizes our revenue system but also positions the state as an attractive destination for digital businesses and entrepreneurs.
States like Arizona, Utah, Florida, Illinois, North Dakota, South Dakota, and Texas have already embraced Bitcoin as a strategic asset. North Carolina, with Charlotte as a prominent financial hub, possesses a unique opportunity to lead, rather than follow, in this digital finance revolution. A Bitcoin reserve not only offers protection against inflationary pressures but also drives economic growth, job creation, and attracts capital investment.
The essence of establishing a Bitcoin reserve in North Carolina is deeply rooted in securing financial independence and upholding our legacy of innovation. Just as our state has historically pushed boundaries in various sectors, a Bitcoin reserve symbolizes a continuation of our economic leadership and financial sovereignty. House Bill 92 acts as a pivotal starting point, signaling a promising future, but further steps are essential to solidify North Carolina’s digital presence and secure its economic future.
