A bill allowing North Carolina to invest in cryptocurrency using public funds from the State Pension Plan has passed a state House committee, reversing an earlier rejection. Lawmakers faced pressure from House Speaker Destin Hall, who emphasized the importance of the bill and highlighted that many global investment firms are already using crypto ETFs. The bill permits investments in diversified cryptocurrency funds rather than direct investments in individual cryptocurrencies, aiming to improve returns for pensioners while managing risk. Concerns remain about the volatility of cryptocurrency, as expressed by some lawmakers and the State Employees Association. If approved, State Treasurer Brad Briner will oversee the implementation of these investments, despite some concerns about his experience.
A new proposal in North Carolina is stirring up debate as a bill that would allow the state to invest in cryptocurrency from public funds, including the State Pension Plan, has gained traction. Just a day after it faced rejection in committee, Republican lawmakers shifted their stance and approved the bill during a recent House Commerce Committee meeting.
House Speaker Destin Hall played a pivotal role in this change, showing up to the committee to emphasize the importance of the bill. He highlighted that many leading global investment firms are already using crypto ETFs, or exchange-traded funds, to diversify their portfolios. These funds would allow North Carolina to invest in various cryptocurrencies without directly purchasing them.
While some lawmakers, like Representative Bryan Cohn, expressed concerns over the volatility of cryptocurrency markets, the bill’s supporters believe it could offer better returns for pensioners compared to current investment strategies. The State Employees Association of North Carolina also voiced opposition, citing worries about the unpredictable nature of cryptocurrencies.
As the bill moves forward, the responsibility of how to invest in crypto will fall to State Treasurer Brad Briner, who has only been in office for two months. Although some lawmakers question his experience, Hall defended him, citing Briner’s background in Wall Street investments.
If the bill is enacted, it could mark a significant shift in how North Carolina approaches investment strategies for public funds.
Tags: North Carolina, cryptocurrency, State Pension Plan, investment strategies, House Commerce Committee
What is the new bill about investing in cryptocurrency for the State Pension Plan?
The new bill allows the State Pension Plan to invest some of its money in cryptocurrency. This means that part of the pension fund can be used to buy digital currencies in hopes of making more profit.
Why did NC lawmakers change their minds about this investment?
Initially, lawmakers were cautious about cryptocurrency due to its risk. They changed their minds after seeing potential benefits, like higher returns and interest in the growing digital economy.
What are the risks of investing in cryptocurrency for the pension fund?
Cryptocurrency can be very volatile, meaning its value can change suddenly. This can create risks for the pension fund’s stability, which may affect the retirees relying on it.
How will this investment affect retirees in North Carolina?
If the investment in cryptocurrency is successful, it could lead to higher returns for the pension fund. This might help improve the fund’s health, which can benefit retirees with better benefits in the long run.
What other areas are being considered for investment along with cryptocurrency?
Along with cryptocurrency, lawmakers are also looking at technology start-ups, renewable energy projects, and other innovative sectors. They believe these areas may create good opportunities for growth and help the pension fund thrive.
