North Carolina May Invest Retirement Funds in Bitcoin

• Twin bills propose 5% crypto allocation in retirement funds
• Bitcoin named among potential crypto investments
• Aims to modernize North Carolina’s investment strategy

Lawmakers in North Carolina have introduced identical bills in the state House and Senate that would allow the state’s treasurer to invest in cryptocurrencies. The legislation proposes that up to 5% of several state-managed retirement funds could be allocated to digital assets like Bitcoin.

This move marks a significant shift in the way traditional public funds are managed, signaling growing acceptance of cryptocurrency in the mainstream financial system. The proposal specifically mentions Bitcoin as a viable investment, alongside other cryptocurrencies that may be approved later.

The bills are still in early stages but, if passed, they would empower the treasurer to include digital assets in the investment portfolio of the Teachers’ and State Employees’ Retirement System, among others.

Why Bitcoin, and Why Now?

North Carolina is joining a broader trend where institutions are looking to diversify holdings with emerging assets. With Bitcoin’s increasing institutional adoption and its status as a hedge against inflation, lawmakers see potential benefits in leveraging the asset’s long-term growth.

Advocates of the bill argue that adding crypto exposure, even a modest 5%, could boost returns without heavily increasing risk. However, critics highlight the volatility of digital assets and the lack of regulatory clarity.

The bill could also encourage other states to consider similar legislation, further integrating crypto into the public finance sector.

The Impact on Public Pensions

If approved, this initiative could reshape how public pensions are managed in the digital era. State employees and teachers, whose futures are tied to these retirement funds, would indirectly gain exposure to the crypto market—something that may have seemed unlikely just a few years ago.

Still, much will depend on how the state treasurer chooses to implement the policy, and which cryptocurrencies are deemed secure and appropriate. Oversight and risk management will be crucial in balancing innovation with fiduciary responsibility.