The state of North Carolina is considering a groundbreaking shift in its financial strategy. A new bill, known as Senate Bill 327, proposes investing up to 10% of the state’s public funds in Bitcoin (BTC). If passed, North Carolina could become the first U.S. state to officially hold a Bitcoin reserve as part of its long-term financial planning.

Bitcoin Reserve as a North Carolina Strategy

The bill, introduced by Senators Todd Johnson, Brad Overcash, and backed by Timothy Moffitt, aims to integrate Bitcoin into the state’s financial portfolio. This move is not just about storing value—it signals a deeper commitment to embracing the digital asset sector.

According to the proposal, the State Treasury would be authorized to convert up to 10% of available public funds into Bitcoin. To ensure security, these assets would be held in cold storage with multi-signature protection, a method widely used by professional investors to minimize risk.

Key aspects of the plan include:

Purchasing BTC only from regulated U.S. exchanges
Bulk acquisitions to capitalize on favorable market conditions
A newly established division within the State Treasurer’s office to oversee management, conduct audits, and secure necessary insurance

Additionally, a Bitcoin Economic Advisory Board will be formed. This panel of experts will provide strategic recommendations, potentially paving the way for Bitcoin lending, staking, or even state-run mining operations to generate revenue.

Strict Usage Restrictions and Transparency

The bill establishes strict guidelines for the use of the Bitcoin reserve. The state may only sell or liquidate BTC holdings in cases of:

Financial emergencies
Pre-approved investment strategies
Critical infrastructure projects

Otherwise, legislative approval would be required before any Bitcoin transactions take place. To ensure full transparency, the bill mandates quarterly reports to the legislature and regular public updates on the reserve’s status.

Part of a Larger Trend?

North Carolina is not alone in this movement. An increasing number of U.S. states are considering cryptocurrency investments as part of their financial strategies. This trend aligns with President Donald Trump’s recent executive order, which outlined the creation of a national strategic Bitcoin reserve built from confiscated assets.

What was once seen as a speculative investment is now being recognized as a legitimate financial tool at the state level. If North Carolina successfully implements this plan, it could set a precedent for other states—ushering in a new era of government-backed Bitcoin adoption.