New Hampshire has introduced legislation to establish a strategic reserve of digital assets within the state treasury.

Investing in Digital Assets

The bill allows the state to allocate up to 10% of its total public funds into Bitcoin and stablecoins. Investments in digital assets must be managed through secure custody solutions and approved by regulatory bodies.

Bitcoin is the only cryptocurrency that meets the necessary market capitalization threshold, but the state treasury is also permitted to invest in stablecoins.

Traditional Investments

The legislation also allows for traditional investments in precious metals.

Benefits and Criticisms

The bill has faced criticism, but proponents argue that it is a way to incorporate Bitcoin into state treasuries without explicitly naming it.

By diversifying its investment portfolio to include digital assets, New Hampshire sets a precedent for other states. The potential for generating passive revenue through strategic investments in digital assets could provide financial resources for public services and infrastructure.

Secure Custody and Regulatory Compliance

The legislation emphasizes the importance of secure custody solutions and regulatory compliance. As more states consider similar initiatives, discussions on best practices and risk management strategies will likely intensify.

Conclusion

Overall, New Hampshire's legislative proposal is a significant milestone in integrating cryptocurrency into state financial management.