North Carolina’s Big Idea: Investing in Cryptocurrency
North Carolina’s lawmakers are thinking about a big change. They want to invest some of the state’s pension money in cryptocurrency. This is a huge shift in how the state handles its money. Let’s dive into this exciting new idea!
Why Cryptocurrency?
North Carolina wants to try something new to make more money for its pension plan. The state’s pension fund hasn’t been doing as well as hoped, so lawmakers are looking for creative solutions. Cryptocurrencies, like Bitcoin, have shown they can grow a lot, even though they can also be very unpredictable[1][3].
The Plan’s Details
The bill, called the Digital Assets Investments Act, lets the state treasurer put up to 10% of the state’s money into digital assets. But here’s the catch: the treasurer can only do this through something called exchange-traded funds (ETFs). This way, the state’s money is spread out among many different cryptocurrencies, not just one like Bitcoin. The treasurer can choose whether or not to invest in digital assets, so they have some flexibility[1].
What People Think
Some people think this is a great idea. They say it could make North Carolina a leader in using new technology and maybe even help the state’s pension fund make more money[1]. But others are worried. They think cryptocurrency markets are too unpredictable and could be risky for the state[1].
Other States Are Looking Too
North Carolina isn’t the only state thinking about this. More than 20 other states are considering similar bills. Even at the national level, people are talking about using cryptocurrency more[4].
Stepping into the Digital Future
A New Way for States to Invest
North Carolina is taking a big step into the world of cryptocurrency with this bill. Even though we don’t know yet if it will become a law, it’s a bold attempt to use new ideas in state finances. People all over the country will be watching to see how it goes, as states try to figure out if investing in digital assets is a good idea.
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Sources:
– www.wunc.org
– www.congress.gov
– www.youtube.com
– www.happyscribe.com
– www.wcnc.com
