North Dakota and New Hampshire Propose Bitcoin Reserves for State Treasuries

Highlights:

• North Dakota and New Hampshire propose using Bitcoin and metals to diversify state treasury reserves.
• New Hampshire plans to invest in Bitcoin with strict rules for the security and storage of digital assets.
• States and nations explore cryptocurrencies to protect finances from inflation and economic risks.

North Dakota and New Hampshire lawmakers have introduced bills to allow digital assets and precious metals to be included in state treasuries. The purpose of these proposals is to guard against inflation and economic uncertainty against state financial resources. Both initiatives resemble a growing interest in having cryptocurrencies included in public investment portfolios.

North Dakota & New Hampshire Lead the Way in Crypto for State Treasuries!

North Dakota: HCR3001 encourages exploring digital assets & precious metals to hedge against inflation.
New Hampshire: Bill allows up to $360M in crypto investments, likely limited to Bitcoin.
Growing… pic.twitter.com/BrlpRZHZr1

— CryptoniteUae (@CryptoniteUae) January 11, 2025

HCR3001 by the North Dakota House and New Hampshire’s proposed legislation seeks to diversify state assets. They also stress secure storage and transparency in controlling the new reserves.

North Dakota Pushes for Treasury Diversification

North Dakota lawmakers introduced HCR3001 on January 7. The resolution was sponsored by two Senators and six Republican Representatives. Representatives Nathan Toman, Matthew Heilman, Jared Hendrix, Daniel Johnston, SuAnn Olson, and Todd Porter are the sponsors. It was seconded by Senators Jeff Barta and Bob Paulson.

The resolution asks the State Treasurer and the State Investment Board to invest in digital assets and precious metals. This applies to the state general fund, budget stabilization fund, and legacy fund. The lawmakers want to protect these funds from inflation and economic instability.

In order to promote transparency, the resolution requires that the Secretary of State provide copies to the State Treasurer and State Investment Board. It ensures that all parties involved fully understand what the legislature intends to do. HCR3001 does not require action but is a signal of major interest in digital assets as part of the state’s financial strategy.

New Hampshire Considers Bitcoin Reserve and Precious Metals

New Hampshire State Representative Keith Ammon introduced a bill on January 9 that would allow Bitcoin and other precious metals in the state’s reserves. The legislation seeks to establish strategic reserves that combine physical and digital assets. New Hampshire would become one of the first places to officially accept Bitcoin in their treasury.

Promises made. Promises kept.

4 states have now introduced legislation to create a ‘Strategic Bitcoin Reserve’.

More coming! https://t.co/TG2bv9CD6Q

— Dennis Porter (@Dennis_Porter_) January 10, 2025

The bill had strict conditions before it allowed cryptocurrency investments. It will only accept assets with a market cap greater than $500 billion in the past 12 months. At present, Bitcoin is the only cryptocurrency that can meet this requirement. The proposed legislation includes stablecoins as well.

The bill also raises security issues. All digital assets held by the state must be stored by qualified custodians. These measures are to mitigate risks that arise because of price volatility as well as storage. The legislation takes a cautious, but forward looking approach to integrating cryptocurrencies into public finance.

Crypto Reserves Gain Popularity Across States and Nations

North Dakota and New Hampshire are among a growing number of US states that are adopting cryptocurrency reserves. On Nov. 14, 2024, Representative Mike Cabell introduced such a plan in Pennsylvania. Shortly after, Texas Representative Giovanni Capriglione followed with a bill. In addition, Alabama State Auditor Andrew Sorrell has also proposed the creation of a Bitcoin reserve.

Countries like Bhutan and Brazil are exploring cryptocurrency reserves. Bhutan recently announced plans to include Bitcoin, Ethereum, and Binance Coin in its treasury. This initiative is part of Bhutan’s Gelephu Mindfulness City project.

These efforts highlight the growing acceptance of digital assets in public finance. States and countries are moving toward diversified financial strategies to ensure long-term stability.