North Carolina to Invest $50K to Study Benefits of Holding Bitcoin

• North Carolina House of Representatives has passed a bill to investigate the potential benefits of Bitcoin and other cryptocurrencies.
• The bill commissions a $50,000 study to analyze the expected benefits of deploying a chunk of the General Fund to digital assets.
• It also examines various factors such as costs, benefits, and security measures related to different depository options.

North Carolina House Passes Bill for Investigating Cryptocurrency Benefits

The North Carolina House of Representatives has passed a bill that includes provisions to investigate the acquisition and potential benefits of Bitcoin and other cryptocurrencies. House Bill 721, titled “State Precious Metals Depository Study” aims to examine the expected impact of securely holding, insuring, and liquidating virtual currency with special emphasis on Bitcoin. The legislation received 73 votes in favor, 40 against, while seven participants were absent. It now awaits further consideration in Senate.

$50K Commissioned for Examining Benefits

The bill is commissioning a $50,000 study for analyzing the prospective advantages of deploying some part of the General Fund into digital assets with an aim to hedge against inflation and systemic credit risks. Additionally, it would assess if such holding by the state could help in reducing overall portfolio volatility and increasing portfolio returns over time.

Research Factors Related To Different Depositories

Besides examining the advantages provided by this asset class, House Bill 721 also emphasizes evaluating various factors such as costs, merits, and protection measures connected with diverse depositories. Other aspects which form part of this research are feasibility analysis concerning leveraging privately managed depository or another state’s depository or setting up State-managed depositories etcetera.

Potential Impact On Economy And Financial Assets

The objective behind this study is twofold; firstly it looks at understanding any potential influence on economy & financial assets due to deployment & management associated with cryptocurrency holdings plus secondly what would be its impact on reducing risk exposure & enhancing return generation capabilities if any? After completion of these studies suitable recommendations will be proposed for implementation within NC government framework if found feasible enough after thorough examination & assessment process taking all criteria into account .

Conclusion

This research initiative taken up by NC legislators is quite promising given that it plans to evaluate both positives & negatives linked with crypto investments before taking any final decision regarding adoption thereof within state infrastructure so as not only protect state funds but also look at ways via which these funds can be deployed safely across new emerging asset classes like cryptocurrency without putting them at much risk either from market volatility standpoint or legal perspective thus helping in better diversification plus higher returns without compromising liquidity requirements too much during unfavorable times when required suddenly