New Hampshire's Bold Bitcoin Bet: A State's Experiment with Crypto Bonds

New Hampshire is making a significant move into the digital currency realm. The state is exploring the creation of a $100 million bond backed by bitcoin. This is not your typical government project. Instead, a private company will manage the bond, with the New Hampshire Business Finance Authority (NHBFA) providing support.

A Unique Approach

The NHBFA is not typically involved in state bonds. Its primary role is to encourage private companies to undertake such initiatives. If successful, this bond could be the first of its kind in the U.S. The NHBFA is a state organization focused on economic development, with bond proceeds funding its operations.

Advocacy and Vision

State Representative Keith Ammon has been a vocal advocate for cryptocurrency in New Hampshire. He views this bitcoin bond as a means to shield the state's finances from inflation, likening it to training wheels for the state's foray into digital currency.

Bond Details and Risks

The bond will have a two-year duration, and its success hinges on the appreciation of bitcoin's value. However, bitcoin has recently experienced a 6% decline over the past year, following a prolonged period of growth.

Unanswered Questions

This experiment raises critical questions:

• Can a state effectively protect itself from inflation using cryptocurrency?
• Is bitcoin a reliable asset for a government bond?

Only time will reveal whether New Hampshire's bold initiative will yield positive results.