A significant legislative proposal in North Carolina could pave the way for cryptocurrencies to be officially recognized as a valid payment method. The bill, designated H.B. 920, aims to facilitate the use of digital currencies for tax payments and economic transactions, affirming their standing as legitimate means of exchange. This initiative coincides with a growing national interest in cryptocurrencies, reflecting a broader acceptance influenced by political figures like former President Donald Trump.
Will Cryptocurrencies Be Accepted for Official Payments?
Authored by State Representative Neal Jackson and supported by two colleagues, H.B. 920 proposes that North Carolina incorporate cryptocurrencies into its official payment systems. The legislation makes it clear that utilizing cryptocurrency in transactions will not be a basis for deeming those transactions invalid.
What Criteria Must Cryptocurrencies Meet?
Under the bill’s provisions, only certain cryptocurrencies will qualify for this recognition. To be acceptable, a cryptocurrency must have a market capitalization exceeding $750 billion and a daily transaction volume of at least $10 billion. These standards are aimed at ensuring that the cryptocurrencies involved meet essential economic criteria like market depth and liquidity.
In addition to economic factors, the legislation also considers the technical and governance aspects of cryptocurrencies. A qualifying cryptocurrency should have been actively traded in the open market for no less than ten years, proving its security and resistance to censorship. Furthermore, it should maintain a decentralized framework, devoid of links to a central authority or pre-mined distributions.
Projects with concentrated control are excluded to maintain the independence of the recognized cryptocurrencies. Interestingly, the bill does not specify any particular cryptocurrency, including Bitcoin, leaving room for various digital currencies to be accepted.
H.B. 920 is part of a growing legislative movement in North Carolina regarding cryptocurrencies. Just last month, lawmakers introduced H.B. 506 and S.B. 709, which would permit a portion of retirement funds to be invested in these digital assets. Moreover, bills H.B. 92 and S.B. 327 have been presented to allow direct investments in Bitcoin by the state treasury, showcasing North Carolina’s intent to expand the role of cryptocurrencies within its financial ecosystem.
- North Carolina is proposing to recognize cryptocurrencies for tax and economic transactions.
- The proposed legislation establishes criteria for acceptable cryptocurrencies, including market capitalization and daily transaction volume.
- Technical aspects like security and decentralization are also considered in the legislation.
- Current bills indicate a trend toward integrating cryptocurrencies into the state’s financial system.
The proposed measures reflect North Carolina’s willingness to adopt and integrate cryptocurrencies into its financial frameworks, signaling a progressive approach to digital currency in governance and economic strategy.
