New Hampshire took steps this week to encourage the state’s first effort toward establishing a $100 million bitcoin. bond, which would be led by a state entity but backed by a private sector company, according to those involved in the effort.
The New Hampshire Business Finance Authority authorized “$100,000,000 bonds for a project to acquire and maintain digital currency,” according to the description in its agenda. The NHBFA does not manage state-backed bonds, but encourages private sector entities to manage them. If that happens with this bond, the New Hampshire Executive Council will review the agreement and vote on whether to approve it.
Once approved, the project will be launched, the first of its kind in the country.
The NHBFA is a state-created, self-funded organization designed to foster the economic development of New Hampshire. Proceeds from its bond projects return to the entity to help strengthen its operation.
State Rep. Keith Ammon, a long-time advocate for crypto policy in New Hampshire, said this first bitcoin bond effort is intended to be a model for others to come.
“Bitcoin can partially insulate our state’s rampant inflation,” he said in an interview with CoinDesk. “This is like training wheels to get to that point, protecting our state’s finances from future dollar devaluation.”
He said the two-year bond would depend on a rising value of bitcoin.
Last year, BTC was down around 6%, after rising steadily for months before its sharp drop that began last month.
New Hampshire has been at the forefront of state governments pursuing crypto policies. The state of New England was the first to establish a cryptocurrency reserve earlier this year, moving much faster than the federal government, which is still in the planning stages.
