New Hampshire decided this week to support the state’s first $100 million bitcoin effort. a bond, which would be led by a public entity but supported by a private sector company, according to those involved in the effort.
The New Hampshire Business Finance Authority has authorized “bonds of $100,000,000 for a digital currency acquisition and holding project,” according to the description on its agenda. The NHBFA does not direct government-guaranteed bonds, but encourages private sector entities to administer them. If that happens with this bond, the New Hampshire Executive Council will review the agreement and vote whether to approve it.
Once approved, the project will be commissioned – the first of its kind in the country.
The NHBFA is a self-funded organization created by the state to promote economic development in New Hampshire. The proceeds from its bond projects go back to the entity to help strengthen its operations.
State Rep. Keith Ammon, a longtime crypto policy advocate in New Hampshire, said this first Bitcoin bond effort is meant to be a model for others to come.
“Bitcoin can partially insulate our state’s runaway inflation,” he said in an interview with CoinDesk. “It’s like training to get there, protecting our state’s finances from future dollar devaluation.”
He said the two-year bond would depend on the rise in the value of Bitcoin.
Over the past year, BTC has fallen about 6%, after rising steadily for months before its sharp decline that began last month.
New Hampshire has been at the forefront of state governments implementing crypto policies. The New England state was the first to establish a crypto reserve earlier this year, moving much faster than the federal government, which is still in the planning stages.
