North Dakota Considers Bitcoin Investments to Hedge Against Inflation

North Dakota is exploring the possibility of including Bitcoin and other digital assets in its state balance sheets. On Friday, the North Dakota State Legislature introduced Resolution 3001, which seeks to diversify state investments into digital assets and precious metals to mitigate the impact of inflation on public finances.

The resolution, introduced by Representatives Nathan Toman, Matthew Heilman, Jared Hendrix, Daniel Johnston, SuAnn Olson, and Todd Porter, along with Senators Jeff Barta and Bob Paulson, highlights the need for "prudent investment of the state's financial resources" in response to changing economic conditions and emerging opportunities.

If approved, the resolution would direct the State Treasurer and Investment Board to allocate portions of key state funds to digital asset investments. While it does not explicitly name Bitcoin, it encourages a broader evaluation of asset classes.

John Bjornson, Director of the North Dakota Legislative Council, clarified the resolution’s intent, stating it is advisory rather than legislative. “The resolution is simply encouraging the State Treasurer and the State Investment Board to look at investing in different types of assets rather than what they currently do,” Bjornson told Decrypt.

The resolution is set for a vote on Tuesday, though its passage would be largely symbolic. Other states, including Florida, Texas, Pennsylvania, Ohio, and New Hampshire, are also evaluating Bitcoin reserves as part of their financial strategies.

On the same day, New Hampshire introduced legislation for a state Bitcoin reserve, with stipulations favoring Bitcoin as the eligible asset based on market capitalization. North Dakota’s resolution, however, does not impose similar criteria.

In September, Louisiana became the first U.S. state to accept Bitcoin and USDC stablecoin payments for services. Advocates of state-level Bitcoin reserves, like New Hampshire Representative Keith Ammon, emphasize the urgency of early adoption.

“The state that is last to build Bitcoin reserves will lose,” Ammon told Decrypt. “It’s urgent that states act sooner than later, and that takes some education on the part of state officials.”