North Dakota Legislature Considers Diversifying State Treasury with Digital Assets and Precious Metals
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North Dakota Legislature Proposes Digital Assets for State Treasury
In a move to diversify its investment portfolio and hedge against inflation risks, the North Dakota Legislature has proposed adding digital assets to the state treasury. House Concurrent Resolution 3001 (HCR3001) was introduced on January 7, seeking to allocate parts of the general fund, budget stabilization fund, and legacy fund towards these investments.
The resolution is sponsored by six Republican representatives and two senators, who aim to strengthen the state’s financial resilience in the face of changing economic conditions. By including digital assets and precious metals, lawmakers hope to create a hedge against inflation and market instability.
Transparency is paramount in this proposal, as copies of the resolution have been forwarded to both the State Treasurer and the State Investment Board for further consideration. This ensures alignment with the state’s financial goals while maintaining accountability.
This move follows other states exploring similar initiatives. Just last week, New Hampshire introduced a bill that would allocate up to $360 million in cryptocurrencies, but only allows investments in assets with a market cap exceeding $500 billion over the past year. This restriction would effectively limit eligible investments to Bitcoin alone. In contrast, North Dakota’s proposal takes a technology-neutral approach, eschewing specific mentions of Bitcoin.
Several other states are also considering adding Bitcoin or other digital assets to their strategic reserves, including Texas, Pennsylvania, and Florida. The potential impact of this resolution is significant, as it could set a precedent for future treasury diversification efforts.
The vote on the proposal is scheduled for Tuesday, marking a critical step in the state’s investment strategy. If passed, it would signal a major shift towards digital assets in North Dakota’s financial portfolio.
Source: cryptonewsland.com
