North Carolina Bitcoin Reserve Bill Passes First Reading, Proposes Allocating 10% of Public Funds to Bitcoin

On March 20, according to the latest X post from Bitcoin Magazine, the Bill No. 327 "North Carolina Bitcoin Reserve and Investment Act" proposed by the U.S. state of North Carolina officially passed its first reading on March 19.

The bill, sponsored by Senators Johnson and Overcash, has a core provision authorizing the state treasurer to allocate up to 10% of public funds into bitcoin as part of the state's long-term financial strategy.

To ensure asset security, the bill requires that bitcoin allocated from public funds must be stored in multi-signature cold wallets and managed by a dedicated state custodial department, aiming to establish a comprehensive asset security protection system from storage methods to management entities.

The bill grants the custodial department certain authority, allowing it to conduct yield-generating activities within the regulatory framework, with common business operations such as staking and lending within the permitted scope.

In this way, the custodial department can leverage these activities to create more revenue opportunities for relevant entities while also enriching the operational models and pathways of the entire asset management.

Additionally, the bill requires the establishment of a Bitcoin Economic Advisory Committee to provide professional guidance for reserve management and implement a monthly audit system to ensure transparency and compliance in departmental reserve operations.

If the proposal ultimately passes, North Carolina will become one of the first U.S. states to directly allocate public funds to bitcoin. Although the bill has passed its first reading, it will still require multiple rounds of review in subsequent stages.

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