North Carolina lawmakers approve bill seeking study on state adoption of Bitcoin

• The “State Precious Metals Depository Study” bill received bipartisan support and passed 75-38.
• North Carolina could look into adding Bitcoin to its State Treasury if the bill is passed.
• In May, the house voted for another bill that seeks to ban CBDCs in the state. 

North Carolina’s lower house has passed a bill that could see the state initiate a study into the potential benefits of the state’s Department of State Treasury adopting Bitcoin.

📢 Another #Bipartisan Victory in NC w/ passage of HB721 | #Bitcoin/#DigitalAssets/Custody Study Bill

-Passed 75-38
-GOP + Dems 🤝 Came Together
-Directs/Funds @NCTreasurer to Study Benefits of #BTC + #Custody
-Led by @NC_Blockchain + @SoundMoneyDef

📎https://t.co/0veKPZlbVJ pic.twitter.com/nNYUbfmJd1

— Dan Spuller (@DanSpuller) June 28, 2023

North Carolina seeks to add BTC to treasury

The “State Precious Metals Depository Study” bill outlines the custody, insurance and liquidation of crypto assets held by the state. It passed 75-38 with bipartisan support and will now be debated in the Senate.

If passed, it will open the path for BTC and gold to be considered as assets that can be added to North Carolina’s funds. Specifically, the house’s approval puts North Carolina one step towards adding Bitcoin to the state’s holdings. 

“This is a very important step to a more formal acknowledgement of #bitcoin in North Carolina. Lots of behind the scenes work,” said Dan Spuller, Head of Industry Affairs at Blockchain Association.

Spuller noted that the passage of HB721 marks the second time a bill pushed by the North Carolina Blockchain Initiative has received bipartisan support in the General Assembly in 2023.

In early May, the house unanimously passed HB690, a bill that banned the use of central bank digital currencies (CBDCs) in payments in the state. The bill also bans North Carolina from participating in any testing of CBDC.

The state of CBDCs globally

A recent survey showed that 130 countries around the world were in various stages of development towards a central bank issued digital currency. According to US-based think tank Atlantic Council these countries included all G20 members.

As highlighted here, China’s CBDC pilot continues and has support from country’s major banks. Meanwhile, India and Brazil are set to launch their versions in 2024. 

The European Central Bank is also looking to begin a pilot for the digital euro and the UK is exploring its “Britcoin” project. In the US, work on a CBDC is advancing only on its use at bank-to-bank level, with the retail digital dollar largely stuck.