North Carolina’s Bitcoin Reserve Bill Passes First Reading, Plans to Allocate 10% of Public Funds to Bitcoin

On March 20, according to the latest X post from Bitcoin Magazine, North Carolina’s proposed Bill No. 327, the “North Carolina Bitcoin Reserve and Investment Act,” was officially passed on March 19.

It is understood that the bill is sponsored by Senators Johnson and Overcash as the primary initiators. Its core content authorizes the state finance minister to allocate up to 10% of public funds to Bitcoin as part of the state’s long-term financial strategy.

To ensure the security of the assets, the bill requires that any Bitcoin allocated from public funds must be stored in multi-signature cold wallets, and that a dedicated custody department within the state be established to manage the assets. The goal is to build a comprehensive asset-security protection system in every dimension—from storage methods to the management entities.

The bill grants the custody department certain powers, allowing it to carry out yield-generating activities within the regulatory framework. Common business operations such as staking and lending are also included within the scope of permissions.

In this way, the entrusted department can use these activities to create more opportunities for additional returns for the relevant parties, while also enriching the overall asset-operation models and pathways.

In addition, the bill also requires the establishment of a Bitcoin Economic Advisory Committee to provide professional guidance for reserve management, and the implementation of a monthly audit system to ensure the transparency and compliance of the department’s reserve operations.

If the proposal is ultimately approved, North Carolina will become one of the first U.S. states to directly allocate public funds to Bitcoin. Although the bill has already passed its first reading, it still needs to go through multiple rounds of review.

#Bitcoin-focused State-Level Strategic Reserves