North Carolina’s Big Idea: Investing in Cryptocurrency
North Carolina’s lawmakers are thinking outside the box! They’re considering a new plan that could change how the state handles its pension money. This plan, called the Digital Assets Investments Act, wants to let the state invest in something called cryptocurrency. This is a big deal because it’s a totally new way for states to manage their money.
Why Cryptocurrency?
You might be wondering, why cryptocurrency? Well, North Carolina’s pension plan has been having some trouble meeting its goals. Lawmakers are looking for new ways to make more money and keep the fund stable. Cryptocurrencies, like Bitcoin, have shown they can grow a lot, even though they’re also known for being a bit unpredictable.
The Bill’s Plan
The bill says the state treasurer could put up to 10% of the state’s money into digital assets, but only through something called exchange-traded funds (ETFs). This way, the money isn’t all in one place, which helps to keep it safer. The treasurer can decide if they want to do this or not, so it’s not a must.
What People Think
Some people think this is a great idea. They say it could help North Carolina be a leader in using new technology and maybe even make more money for the pension fund. But others are worried about the ups and downs of cryptocurrency and whether it’s too risky.
Other states are also thinking about this. More than 20 states have looked into investing in cryptocurrency too. Even some people in the federal government have talked about making a national cryptocurrency reserve to help the U.S. be a leader in the digital world.
Looking Ahead
So, what happens next? North Carolina is taking a big step into the world of cryptocurrency. We’ll have to wait and see what happens in the Senate to know if this plan goes through. No matter what, it’s an interesting time for state investments!
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