NC’s Path to Financial Sovereignty: Why a Bitcoin Reserve Matters

On January 23, President Trump initiated a significant step by signing an executive order to form an internal working group with the vision of making America the world capital of cryptocurrency. This strategic move provides an unprecedented opportunity for North Carolina to be at the forefront of financial innovation and economic empowerment.

Why North Carolina Should Establish a Bitcoin Reserve

North Carolina has a long history of being a pioneer in various sectors. Once again, it stands at the cusp of another ground-breaking endeavor: the establishment of a Bitcoin reserve. This move could redefine our economic landscape and secure financial independence for future generations.

Historical Precedents:

• In 1776, North Carolina was first to declare independence.
• The state’s Spruce Pine quartz powers much of the global Bitcoin network.

Major players like BlackRock have poured billions into Bitcoin, further solidifying its status in traditional finance. BlackRock’s Bitcoin ETF alone has attracted approximately $15 billion since January 2024, underlining Bitcoin’s financial legitimacy.

The Role of Government Initiatives

Federal and State Alignment:

Government at both state and federal levels is aligning with this shift toward digital assets. The SEC, with its new crypto task force, now aims at constructive regulation under Commissioner Hester Peirce. Plus, with Treasury Secretary Scott Bessent’s pro-crypto stance, digital assets form a critical part of national economic policy.

Moreover, North Carolina native Bo Hines leads initiatives to ensure the United States leads in the digital revolution, serving as the executive director of the Presidential Council of Advisers for Digital Assets. These efforts highlight Washington’s commitment to fostering the digital economy.

The NC Digital Assets Investments Act

House Bill 92, introduced on February 10, 2025, is a pivotal legislative step towards integrating Bitcoin into our financial framework. Sponsored by state Reps. Mark Brody and Steve Ross, this bill empowers the state treasurer to:

• Invest public funds in digital assets under strict conditions.
• Limit investments to exchange-traded digital assets with a market cap of at least $750 billion.
• Cap investments at 10% of total fund balances, ensuring a balanced risk strategy.

Economic Benefits for North Carolinians

This legislation covers various state funds, including pensions, the General Fund, and the Highway Trust Fund, translating into a potential $13.7 billion Bitcoin investment. Such an initiative could potentially be the largest state-level crypto proposal ever.

Future-proof Revenue System:

The state could further bolster this initiative by accepting digital asset payments for state administrative fees, taxes, and government services. This move will not only modernize but also incentivize businesses to relocate to a crypto-friendly environment.

Learning from Other States

Several forward-thinking states like Arizona, Utah, Florida, Illinois, North Dakota, South Dakota, and Texas are already recognizing Bitcoin as a strategic asset. Given Charlotte’s status as the second-largest financial hub in the US, North Carolina is uniquely positioned to lead rather than follow this movement.

The Broader Implications

The potential for a Bitcoin reserve to shield the economy from inflation, attract innovative businesses, and create job opportunities aligns with our state’s history of pioneering spirit. Establishment of such reserves signifies a commitment to securing financial independence akin to the battles fought by our founders centuries ago.

Core Strategic Advantages:

• Economic growth and protection.
• Robust job creation in new fields of digital finance.
• Establishment of North Carolina as a national leader in crypto finance.

A Forward-looking Strategy

House Bill 92 marks the beginning of North Carolina’s journey towards digital financial sovereignty. However, to fully capitalize on this potent opportunity, further steps must be taken:

• Introduce digital asset payments for state services to cement digital transition.
• Incorporate stringent security measures to protect investments.

By taking these steps, North Carolina can consolidate its position as a digital asset powerhouse on a global scale.

A Call to Action for State Leaders

With a storied history of innovation, from the Wright brothers to Research Triangle Park, North Carolina has always been a beacon of progress and innovation. The decision to invest in a Bitcoin reserve is not just about following a trend; it’s a strategic imperative for economic resilience and leadership.

For state leaders, the message is clear: The time to act is now. Let’s transform North Carolina into a beacon of financial sovereignty and economic empowerment.

About the Author:

Alej Navia is the co-founder and president of now media & nft now, the leading Web3 media company. He, his wife, and their two boys proudly call Charlotte, North Carolina, home.

Source: https://www.carolinajournal.com/opinion/ncs-path-to-financial-sovereignty-why-a-bitcoin-reserve-matters/