State employees’ pensions in North Carolina won’t be invested in Bitcoin or other cryptocurrency—at least, not yet. The House Commerce Committee put on hold Tuesday a new bill that would allow the State Treasurer to invest potentially billions of dollars from the State Pension Plan and other government accounts into cryptocurrency, as lawmakers expressed skepticism about the proposal’s wisdom. Supporters assert that pension plans could make substantial gains by investing in cryptocurrency, betting the market will keep rising.
Critics, including the State Employees Association of North Carolina (SEANC), argue that politicians shouldn’t gamble with the pension funds that state workers expect once they retire. The bill would permit many state investment funds, including the pension plan and the Highway Trust Fund, to allocate as much as 10% of their money into cryptocurrency. The multi-billion-dollar pension plan is the largest affected and has drawn significant attention.
Many state government jobs pay less than similar positions in the private sector, but the state uses the promise of a pension upon retirement to attract and retain workers. Flint Benson, a former state prison worker and now a lobbyist for SEANC, stated that the legislature would be making a mistake in putting people’s pensions into risky investments. “Bitcoin has been a roller coaster at best, and state employees and retirees do not like the conversation about investing in this highly volatile currency,” Benson told the committee on Tuesday.
Two years ago, one Bitcoin was worth about $20,000. On Tuesday, it traded more than four times that amount, above $88,000. However, it was trading at over $100,000 last month and has taken a sharp dive recently.
Bitcoin isn’t the only cryptocurrency on the market, but it is the most well-known and has the largest market cap. Supporters of the proposal say the bill is designed to minimize risk by focusing on exchange-traded funds (ETFs) instead of single currencies like Bitcoin. Rep. Stephen Ross, R-Alamance, dismissed Benson’s concerns as “scare tactics” and misinformation.
Despite this, the committee wasn’t entirely convinced. It delayed a vote indefinitely to allow more time for cryptocurrency research and to hear from State Treasurer Brad Briner, who has been in office for two months, about how he would handle the new investing power this bill would grant.
Skepticism over crypto pension investments
Rep.
Carla Cunningham, D-Mecklenburg, referenced Briner’s lack of experience, the complexity of cryptocurrency, and broader economic concerns as reasons for hesitation. “People can’t afford to buy a dozen eggs right now, and state employees are not getting the best benefits,” Cunningham said. “So maybe we need to think about it.
I want to understand it, but I guarantee you—90% of us in this room don’t.”
Although many legislative bills divide along partisan lines, this one has divided largely along generational lines. Younger lawmakers, including 37-year-old House Speaker Destin Hall, largely support the proposed changes, while many older lawmakers remain more skeptical.
Rep. John Blust, a 70-year-old Guilford County Republican, expressed uncertainty about cryptocurrency’s legitimacy and hesitated to risk state funds without more solid information. “Sometimes I wonder if I’m the biggest fool in the world for not jumping in because it seems to keep going up,” Blust said.
“But I don’t want to put money into something, and I don’t know how it works. You’ve got to be careful, especially with other people’s money that they’re counting on.”
Rep. Julia Howard, an 80-year-old Davie County Republican, agreed.
“I don’t understand it as clearly as I wish I did to make a good decision,” she said, recommending that Briner himself address the committee rather than the lobbyist his office sent Tuesday to voice support for the bill. The fate of the cryptocurrency investment bill remains uncertain as lawmakers grapple with the potential risks and rewards. The House Commerce Committee plans to revisit the issue after gathering more information and hearing directly from Treasurer Briner.
As the debate continues, the financial future of North Carolina’s state employees hangs in the balance.
Image Credits: Photo by Crypto Crow on Pexels
