Important points
- New Hampshire became the first state in the country to approve $100 million in municipal bonds backed by Bitcoin.
- The state passed a bill that would allow treasurers to invest in digital assets such as Bitcoin through strategic reserves.
New Hampshire has approved a $100 million Bitcoin-backed municipal bond, creating the first state-level Bitcoin-backed municipal bond in the United States, according to Crypto in America.
The initiative follows New Hampshire's decision earlier this year to allow its state treasury to invest up to 5% of public funds in digital assets, establishing the nation's first Strategic Bitcoin Reserve. Gov. Kelly Ayotte and state lawmakers see the bond as a way to test Bitcoin as high-grade collateral under traditional municipal finance rules.
Potential profits from fees and collateral will support the state's Bitcoin Economic Development Fund. If successful, this structure could pave the way for the adoption of crypto-backed debt products.
This development marks a nationwide financial revolution as local governments seek alternative financing mechanisms for public funds.
