New Hampshire has approved the issuance of $100 million in Bitcoin-backed municipal bonds, which appears to be the first such structure at the state level in the United States.
The New Hampshire Business Finance Authority (BFA) — the state's business financing agency — indicated in the minutes from its November 17 meeting that the board plans to "consider approving a resolution authorizing the issuance of up to $100 million in bonds for a project that acquires and holds digital currency."
The minutes from the following day's meeting show that the directors voted to "approve a preliminary formal intent to issue up to $100 million in taxable pipeline revenue bonds for WaveRose Depositor, LLC without reservation."
According to Wednesday's Crypto in America report, the bonds are backed by Bitcoin (BTC) and will allow the company to borrow against over-collateralized BTC held by a private custodian. The state or taxpayers do not provide support for the bonds; instead, the BFA approves and oversees private transactions, while Bitcoin — reportedly held by BitGo — provides assurance to investors.
The report states that asset management firm Wave Digital Assets and bond expert Rosemawr Management designed this bond to utilize Bitcoin as collateral under the same rules governing municipal and corporate bonds. Wave co-founder Les Borsai stated that the goal is to "bridge the gap for institutional investors between traditional fixed income and digital assets."
"We believe this structure demonstrates how the public and private sectors can work together to responsibly unlock the value of digital assets and digital asset reserves," he added.
Borrowers are expected to provide Bitcoin as collateral worth approximately 160% of the bond's value, and if the BTC price falls below about 130%, liquidation will ensure that bondholders remain whole. According to BFA Executive Director James Key-Wallace, the fees from the transaction will fund local innovation and entrepreneurship programs — the Bitcoin Economic Development Fund.
This news comes after New Hampshire became the first U.S. state to allow its government to invest in cryptocurrencies in May, when Governor Kelly Ayotte signed a bill permitting municipal authorities to "invest in cryptocurrencies and precious metals."
New Hampshire is also drafting a bill to relax regulations on local cryptocurrency mining operations. In late October, a committee voted 4-2 to send the measure for further review in a temporary study, after the measure had stalled twice in the state Senate.
Local governments are seen as particularly friendly to the cryptocurrency industry. In early February, anti-money laundering expert Brendan Cochrane from YK Law in New York City suggested it could become an alternative for cryptocurrency companies relocating to the Bahamas.
The latest initiative builds on a longer history of cryptocurrency engagement. As early as 2015, New Hampshire was working on a bill that would allow the state government to accept tax payments in Bitcoin.
The bill ultimately failed in 2016, but it demonstrated how early local governments began to show interest in this asset class. Additionally, as early as 2016, some advocates had already considered New Hampshire one of the most Bitcoin-friendly communities in the world.
Related: Senator warns that Trump-linked crypto companies could pose a national security threat
Original article: “New Hampshire Approves Groundbreaking $100 Million Bitcoin (BTC) Backed Municipal Bond”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
