New Hampshire is moving forward with plans for a first-of-its-kind $100 million state-level Bitcoin bond, aiming to provide an inflation hedge and marking a significant step in U.S. government cryptocurrency adoption.
The state’s Business Finance Authority (NHBFA) has formally approved the bond’s issuance. Its sole purpose is to acquire and hold Bitcoin.
This financial instrument, if finalized, would be the first state-issued Bitcoin bond in the United States. It differs from traditional state treasury bonds because it does not directly back debt with taxpayer funds.
Instead, the NHBFA functions as a conduit. A private sector firm is required to structure and back the operation. The project is currently awaiting a formal proposal from a private company.
State Representative Keith Ammon, a prominent advocate for crypto policies, told CoinDesk that this “model can serve as a basis for future bonds.”
Ammon added that “Bitcoin can help partially insulate the state from uncontrolled inflation and protect its finances from future dollar devaluation.”
The proposal, once submitted by a private entity, will undergo review and a vote by the state’s Executive Council. Sources indicate high interest from the private sector, though no definitive proposal had been filed as of earlier this week.
New Hampshire has previously positioned itself as a leader in cryptocurrency. In May, it became the first U.S. jurisdiction to establish a strategic cryptocurrency reserve.
Legislation known as “HB 302” authorizes the state treasurer to invest up to 10% of public funds directly into Bitcoin. Other states, including Texas, have since adopted similar measures.
This state-level movement predates federal action. The U.S. federal government is still in the planning stages for a national strategic Bitcoin reserve, an initiative stemming from a previous order signed by former President Donald Trump.
The proposed bond would have a two-year term. Its profitability would be directly tied to the performance of Bitcoin’s price during that period, reflecting the digital asset’s volatile market history.
The NHBFA, which is self-funded through its operations, would receive the capital raised by the bond. This influx of funds would further enhance its capacity to promote economic development projects within the state.