The New Hampshire Executive Council on Wednesday rejected a plan to authorize a $100 million bond issue backed by Bitcoin, invalidating what state officials presented as the nation’s first plan to attract digital finance to the Granite State.
New Hampshire state legislators voted 3-2 against the bill, according to a report. boston globe.
The New Hampshire Department of Corporate Finance and Gov. Kelly Ayotte touted the bond as “groundbreaking” and “historic.” The deal was supposed to be the world’s first bitcoin-backed municipal bond. The plan cleared Moody’s rating and reached the Executive Board for a final vote before publication.
The City Council did not share that enthusiasm. The lone Democrat, Karen Riot-Hill, characterized her opposition as alarm rather than hostility.
“I’m not against Bitcoin or cryptocurrencies in general,” she said. boston globe. “But I think we are being asked as a nation to give some kind of legitimacy to financial transactions from emerging asset classes that are proving to be very volatile.”
Bitcoin is “emerging”
James Key-Wallace, executive director of the Department of Corporate Finance, objected to this framework. “The only quibble is…I wouldn’t call them ‘upstarts,'” he says. “They have ‘emerged.’” They are here. ”
Key-Wallace emphasized that the bond poses zero risk to New Hampshire taxpayers. This loan agreement will form a conduit between private investors and private borrowers, using cryptocurrencies as collateral.
Even if Bitcoin were to collapse, the state would not be held responsible. If Bitcoin appreciates over a three-year period, authorities could levy millions of dollars in fees for small businesses, child care, housing, and economic development programs. He said the deal could lead to “a few more things.”
Ayotte, who last year signed legislation giving the state treasurer discretion over bitcoin investments and making New Hampshire the first state to pass a strategic bitcoin reserve into law, defended the value of moving first.
“I think this is something we really need to think about because if we continue to be innovative, our state will continue to thrive, especially if we can do so in a way that protects taxpayers,” she said.
Riot Hill moved to table the proposal, but none of his colleagues supported the motion, and silence ensued, leading to a final vote on the plan. Janet Stevens and David Wheeler also joined in opposing her. Joseph Kenney and John Stephens voted yes.
Key-Wallace said his team remains excited about the country’s role in the digital asset economy and offered to bring the idea to Congress in the future.
The post New Hampshire City Council Rejects $100 Million Bitcoin-Backed Bond originally appeared on Bitcoin Magazine and was written by Micah Zimmerman.
