North Carolina Pushes for Historic 10% Bitcoin Reserve Allocation

North Carolina is making waves in the financial world with a bold proposal to allocate up to 10% of its state reserves into Bitcoin. If passed, the legislation would position the state as a pioneer in digital asset adoption among U.S. state governments. With backing from key legislators and national discussions on cryptocurrency heating up, the move could signal a major shift in how states manage public funds.

A Legislative Push for Bitcoin Investment

The proposed legislation, known as House Bill 92 (HB 92), is spearheaded by House Speaker Rep. Destin Hall, along with Representatives Mark Brody and Steve Ross. These lawmakers, known advocates of digital assets, are pushing for the state to allocate public funds into exchange-traded products linked to digital assets with a market capitalization exceeding $750 billion.

Right now, that means one thing—Bitcoin. The world’s largest cryptocurrency currently boasts a market cap of about $1.93 trillion, making it the only eligible asset under the proposed guidelines.

The bill would allow the state to invest a portion of funds from pensions, insurance pools, and veteran trust funds into Bitcoin-related assets. Proponents argue that the move could diversify the state’s investment strategy while potentially yielding strong returns.

Bitcoin in State Reserves: A Growing Trend?

North Carolina is not alone in exploring Bitcoin as part of its state reserves. The state has become the 19th in the U.S. to consider such a move, but few have taken meaningful legislative steps.

Dan Spuller, Head of Industry Affairs at the Blockchain Association, emphasized that North Carolina’s proposal is a serious one. “A lot of these bills get introduced but never make it past committee,” Spuller noted. “This one has real legs.”

The increasing interest from state governments follows broader national discussions about Bitcoin’s role in government treasuries. During his campaign, former President Donald Trump suggested incorporating Bitcoin into national reserves, a stance that has energized crypto-friendly lawmakers at both state and federal levels.

Utah Leading the Way with Bitcoin Reserves

While North Carolina’s proposal is making headlines, Utah is further along in the process. Last week, Utah’s House of Representatives passed the “Strategic Bitcoin Reserve” bill (HB 230), introduced by State Representative Jordan Teuscher.

The bill, which now awaits a Senate vote and the governor’s approval, would make Utah the first state to officially invest in Bitcoin with public funds. If enacted, it would allow the state to allocate up to 5% of its reserves into Bitcoin and other cryptocurrencies.

For context, here’s how North Carolina’s proposal compares to Utah’s:

Utah’s progress could set the stage for other states to follow suit. If the bill is signed into law, it would establish a precedent for states actively managing crypto holdings in their reserves.

Will Bitcoin Investments Benefit North Carolina?

Supporters of North Carolina’s HB 92 believe that investing in Bitcoin could have a positive financial impact. Rep. Destin Hall argues that digital assets are not only a hedge against inflation but also a way to modernize state investment strategies.

“Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption and innovation,” Hall stated.

However, critics point to the volatility of Bitcoin as a risk factor. Digital assets have historically experienced extreme price fluctuations, raising concerns about the stability of public funds invested in such markets. Despite Bitcoin’s massive gains in recent years, the cryptocurrency market has also seen sharp downturns.

One thing is clear—North Carolina’s proposal could be a major step toward wider state-level adoption of Bitcoin. Whether the bill gains enough traction to become law remains to be seen, but it’s certainly adding fuel to the national debate on how governments should approach digital assets.