• The North Carolina House of Representatives has passed a bill to investigate the acquisition and potential benefits of Bitcoin and other cryptocurrencies.
• The bill, titled “State Precious Metals Depository Study”, aims to examine the potential impact of a state securely holding, insuring, and liquidating virtual currency.
• A $50,000 study will be conducted to analyze the expected benefits of deploying a chunk of the General Fund to digital assets, such as hedging against inflation and increasing portfolio returns over time.
North Carolina House Passes Bill for Crypto Research
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. Titled “State Precious Metals Depository Study”, this bill aims to examine the potential impact of a state securely holding, insuring, and liquidating virtual currency with special emphasis on Bitcoin. It has been referred to the Senate for further consideration.
$50K Spending on Studying Benefits
The legislation approved by the House calls for commissioning a $50k study for analyzing the anticipated benefits of deploying a chunk of General Funds into digital assets like Bitcoin; this is done with an intention to hedge against inflation & systemic credit risks in order to reduce overall portfolio volatility & increase returns over time. Besides exploring these advantages associated with asset class, it also highlights importance assessing different factors related depository options such as costs, security measures & more.
Potential Benefits Investigated
The research commissioned by this study would assess the feasibility leveraging privately managed depositories or another state’s depository system or setting up State-administered depository if deemed necessary. The study aims to determine whether investing in digital currencies can help protect value from economic downturns & generate higher overall portfolio returns compared traditional financial instruments available currently on market.
Risks Involved In Crypto Investments
In addition to examining possible rewards associated crypto investments, it is also important consider any risks involved before taking leap into new asset class such as volatile nature cryptocurrency prices due their decentralized status or potential threat hackers pose when dealing online transactions heavily dependent cryptography technology .
This research should provide valuable insight into how investing in cryptocurrencies could benefit North Carolina residents in long run by hedging against inflation & helping increase overall portfolio returns while reducing risk profile significantly compared traditional investment strategies which often rely government backed fiat currencies for generating satisfactory yields .