Bill
SB 975
The bill directs a two-part study on accepting digital asset payments for selected state fees and on reducing household remittance costs, with no obligation to adopt digital assets
Title: State Digital Asset Payments Study Act
Purpose
- Direct the North Carolina Department of State Treasurer to study two related areas:
1) The feasibility and implications of accepting digital asset payments for certain state fees.
2) Household remittance costs and potential mechanisms to reduce those costs, including consideration of digital payment technologies.
- Appropriate funds to support these studies and require final reporting with recommendations.
Key Provisions and Changes
1) Definitions
- Digital asset: Fungible, blockchain-based value usable as a medium of exchange or settlement, transferrable electronically.
- Exclusions: Non-fungible tokens (NFTs), digital collectibles, tokenized artwork, assets marketed as speculative investments, and central bank digital currencies (CBDCs) are not covered.
2) Legislative Findings and Purpose
- Aims to modernize government payments while managing fiscal, cybersecurity, and operational risk.
- Recognizes existing regulated digital asset/payment infrastructures.
- Emphasizes objective criteria (liquidity, stability, regulatory compliance) for evaluating digital asset payments.
- Highlights substantial remittance costs borne by North Carolina households who send money internationally or to family abroad, and their impact on disposable income.
3) State Fees Digital Asset Payments Study (Section 4)
- Lead entity: Department of State Treasurer (DST).
- Consultations: DUT with multiple agencies including:
- Department of Information Technology (cybersecurity and systems integration)
- Office of the State Controller (accounting, reconciliation, financial reporting)
- Office of State Budget and Management (fiscal impact and budgeting)
- Department of Justice (legal compliance)
- Agencies that administer fee-based payment portals (e.g., DMV, Secretary of State)
- Scope: Evaluate operational/technological requirements for accepting digital assets via third-party processors that convert to USD immediately; assess cybersecurity, fraud prevention, transaction monitoring; examine banking/settlement/reconciliation impacts; review regulatory considerations (AML, sanctions, consumer protection); determine suitable digital assets by liquidity, stability, regulatory status; consider role of U.S. dollar–denominated, fully reserved stablecoins; estimate implementation costs and administrative impact.
- Priority assets: Emphasizes USD-denominated, fully reserved stablecoins issued by regulated entities; excludes digital collectibles/NFTs.
- Limitations: No requirement for agencies to accept digital assets; no authority to hold, invest in, or custody digital assets; no legal tender designation; no acceptance of digital assets for taxes or fines.
- Reporting: DST must provide a written report to the Joint Legislative Oversight Committee on General Government and the Fiscal Research Division by January 15, 2027, with findings and recommendations.
4) International Payments and Household Remittance Study (Section 5)
- Lead task: DST, in consultation with the Office of the Commissioner of Banks.
- Scope: Comprehensive study of NC residents’ household remittance/payments (domestic and cross-border).
- Key areas analyzed: Fees, FX spreads, market structure, consumer protection and financial crime, regulatory framework (state and federal), potential role of digital platforms and blockchain, USD-denominated fully reserved stablecoins, financial inclusion (unbanked/underbanked), and risks to financial stability, data security, privacy, and safeguards.
- Reporting: DST must report findings and policy recommendations to the same oversight bodies, outlining mechanisms to reduce remittance costs consistent with consumer protection and regulatory compliance.
5) Appropriations and Funding (Section 6)
- General Fund appropriation of $50,000 (nonrecurring) for FY 2026-2027.
- Intended to support research, interagency coordination, technical consultation, and report preparation.
- Prohibition on using funds to procure, hold, invest in, or acquire digital assets.
6) Effective Date
- The Act becomes law upon enactment.
Who Is Affected
- State agencies involved in fee collection and IT/cybersecurity (DST, Department of Information Technology, Office of the State Controller, Office of State Budget and Management, Department of Justice, DMV, Secretary of State, and related agencies).
- North Carolina residents who remit money domestically or internationally (potential beneficiaries of reduced remittance costs).
- Financial institutions and authorized remittance providers subject to regulatory oversight in state and federal contexts.
Timeline and Process
- Study initiation presumably after enactment; final reports due by January 15, 2027.
- Initial appropriation of $50,000 for 2026-2027 fiscal year to fund the studies.
Overall Impact
- The bill creates a structured, two-part study exploring whether and how digital asset payments could be used for select state fees, while also examining household remittance costs and potential digital-asset-enabled solutions.
- It does not authorize immediate adoption of digital asset payments, require agencies to accept them, or alter state monetary policy or legal tender status.
- Outputs include policy recommendations and implementation considerations, with an emphasis on safety, regulatory compliance, and consumer protections.
Compiled from official sources — confirm details with the bill’s official record.
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