A new bill presented in North Carolina aims to recognize cryptocurrencies as an official payment method.
Named H.B. 920, the bill seeks to promote the use of cryptocurrencies for tax payments and economic transactions. It acknowledges cryptocurrencies as legally valid means of exchange, preventing these types of transactions from being deemed invalid. This move comes at a time when interest in cryptocurrencies is rising across the United States, paralleling former President Donald Trump’s pro-cryptocurrency stance.
Encouraging Cryptocurrency Use for Taxes and Investments
Drafted by State Representative Neal Jackson and co-sponsored by two other legislators, H.B. 920 proposes that North Carolina accepts cryptocurrencies as a legitimate payment method in official transactions. According to the proposed legislation, the mere fact that a transaction is conducted using cryptocurrency is not sufficient grounds for it to be considered legally invalid.
North Carolina – Cryptocurrency Bill
The bill specifies that only cryptocurrencies meeting certain criteria will be included. An acceptable cryptocurrency must have a market capitalization of at least $750 billion and a daily transaction volume of $10 billion. These criteria aim to ensure that essential economic requirements, such as market depth and liquidity, are met.
Focus on Security, Fair Distribution, and Decentralization
The proposal emphasizes not only economic data but also the technical and governance characteristics of cryptocurrencies. Thus, an appropriate cryptocurrency should have been operational in the open market for at least ten years, proven its security, and demonstrated resistance to censorship. Additionally, it must possess a decentralized structure, meaning it has not been pre-mined, distributed insider, or tied to a central authority.
Projects controlled by a single company or a narrow group are excluded from this framework. All these conditions aim to ensure that cryptocurrencies remain “independent” both technically and philosophically. However, it is notable that the bill does not explicitly mention a specific cryptocurrency, such as Bitcoin.
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H.B. 920 stands as a recent addition to the series of cryptocurrency-focused legislative initiatives in North Carolina. Last month, two other bills—H.B. 506 and S.B. 709—were introduced to establish an investment authority that would allow up to 5% of retirement funds to be invested in cryptocurrencies. All these steps aim to create more space for cryptocurrencies within the state’s financial structure.
Additionally, the bills H.B. 92 and S.B. 327, which propose allowing the state treasury to directly invest in Bitcoin, have also been presented to the legislature. These developments indicate North Carolina’s commitment to accelerating the integration of cryptocurrencies not just technologically but also financially.
