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New Hampshire okays $100M municipal bond backed by Bitcoin
Source: CryptoNewsNet Original Title: New Hampshire okays $100M municipal bond backed by Bitcoin Original Link: https://cryptonews.net/news/bitcoin/32007167/
Overview
New Hampshire has approved a $100 million municipal bond backed by Bitcoin, establishing the first US state-level Bitcoin-backed municipal bond.
The initiative follows New Hampshire’s move earlier in the year to allow its treasury to invest up to 5% of public funds in digital assets, establishing the nation’s first Strategic Bitcoin Reserve. Governor Kelly Ayotte and state lawmakers see the bond as a way to test Bitcoin as high-grade collateral under traditional municipal finance rules.
Key Features
Collateral & Revenue: Fees and potential gains from the collateral will support the state’s Bitcoin Economic Development Fund.
Broader Impact: If successful, the structure may pave the way for the adoption of crypto-backed debt products.
Significance
The development showcases nationwide financial innovation as municipalities explore alternative funding mechanisms for public financing. This marks a significant milestone in integrating digital assets into traditional municipal finance infrastructure.