North Carolina has introduced legislation to invest up to 10% of its public funds into a Bitcoin strategic reserve. This initiative is reflected in two key bills: House Bill 92 (HB 92), introduced on February 10, 2025, and Senate Bill 327 (SB327), introduced on March 18, 2025. Both bills aim to position North Carolina as a leader in cryptocurrency adoption by allocating a portion of state funds to Bitcoin. HB 92, known as the “North Carolina Digital Assets Investments Act,” was introduced by House Speaker Destin Hall, with co-sponsors Representatives Mark Brody and Steve Ross.
It authorizes the State Treasurer to invest up to 10% of public funds—including the General Fund, Highway Fund, and various special funds—into Bitcoin exchange-traded products (ETPs). The bill specifies that eligible digital assets must have a market capitalization of at least $750 billion over the past 12 months, a threshold currently met only by Bitcoin. SB327, dubbed the “Bitcoin Reserve and Investment Act,” was proposed by Republican Senators Todd Johnson, Brad Overcash, and Timothy Moffitt.
It similarly allows the State Treasurer to allocate up to 10% of public funds, including the state’s $9.5 billion general fund, to Bitcoin. This bill emphasizes a “financial innovation strategy” and includes provisions for secure storage (multi-signature cold storage), monthly audits for transparency, and restrictions on selling Bitcoin except in severe financial crises under strict conditions. It also explores Bitcoin mining as a way to build the reserve cost-effectively. These proposals align with a broader trend, as North Carolina joins over 20 U.S. states exploring similar Bitcoin reserve legislation.
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Supporters argue it diversifies state assets, hedges against inflation, and fosters technological innovation. However, Bitcoin’s volatility and regulatory uncertainties remain points of debate among lawmakers. Both bills are under consideration in the North Carolina House and Senate, respectively, with their outcomes still pending. North Carolina’s proposed legislation to invest up to 10% of its public funds into a Bitcoin strategic reserve, as outlined in House Bill 92 (HB 92) and Senate Bill 327 (SB327), could have wide-ranging impacts across economic, financial, technological, and social spheres.
Investing a portion of the state’s $9.5 billion general fund (up to $950 million) and potentially up to $13.7 billion including retirement systems could diversify North Carolina’s assets. Bitcoin’s historical average annual growth rate exceeds 50% over the past decade, suggesting potential for significant returns compared to traditional investments like bonds or equities. This could bolster state revenues if Bitcoin’s value continues to rise. However, Bitcoin’s volatility—evident in its price swings from $79,107 to $83,745 recently—poses a risk of substantial losses.
Proponents argue that Bitcoin, with its fixed supply of 21 million coins, could serve as a hedge against inflation and dollar depreciation. With the U.S. dollar facing periodic devaluation, this move might protect North Carolina’s purchasing power over time. Critics counter that Bitcoin’s price volatility undermines its reliability as a stable store of value, unlike gold or other traditional hedges. If successful, the reserve could generate positive yields, reducing reliance on tax increases or budget cuts.
By integrating Bitcoin into public finance, North Carolina could position itself as a pioneer among U.S. states, attracting blockchain-related businesses, talent, and investment. SB327’s provision for Bitcoin mining could further boost local tech infrastructure and jobs, leveraging the state’s energy resources. This aligns with a national trend, as over 20 states explore similar initiatives, but it could give North Carolina a competitive edge if implemented effectively.
Secure storage (e.g., multi-signature cold storage) and monthly audits mandated by SB327 would require investment in cybersecurity and blockchain expertise. This could spur technological advancements and skill development within the state, though it also demands significant upfront costs and expertise that some experts warn governments may lack. The move could enhance Bitcoin’s legitimacy, signaling institutional confidence and potentially encouraging broader public adoption.
However, skepticism from groups like the State Employees Association of North Carolina highlights concerns over risking pension funds on a volatile asset, which could erode trust if losses occur. Transparent audits and strict oversight might mitigate these fears, but the lack of widespread understanding of cryptocurrency could fuel public unease or opposition. Success could inspire other states to follow, accelerating a domino effect of state-level Bitcoin reserves. This might pressure federal policymakers to clarify crypto regulations, reshaping the U.S. financial landscape.
The absence of a robust federal framework for cryptocurrencies could complicate North Carolina’s initiative. Legal challenges or shifts in national policy (e.g., under President Trump’s proposed national Bitcoin reserve) might disrupt the state’s plans. Bitcoin’s price, currently around $81,530, has seen dramatic fluctuations. A 10% allocation could expose North Carolina to significant financial risk, especially if a market downturn coincides with a state fiscal crisis. Managing a Bitcoin reserve requires expertise in digital asset custody, which some experts argue governments are ill-equipped to handle.
A $950 million investment (or more if retirement funds are included) could boost Bitcoin demand, potentially driving prices higher and reinforcing its status as an institutional asset. This might amplify market rallies if other states follow suit. North Carolina’s move could enhance its reputation as a forward-thinking state, aligning with global trends where nations like El Salvador have adopted Bitcoin as legal tender, though on a smaller scale.
North Carolina’s Bitcoin reserve could yield significant economic benefits, establish the state as a tech leader, and influence national crypto policy—provided risks are managed effectively. However, volatility, regulatory gaps, and public skepticism pose substantial hurdles. The outcome of HB 92 and SB327, still under legislative review, will hinge on balancing innovation with financial prudence.