New Hampshire's Executive Council narrowly rejected a proposal Wednesday that would have authorized a $100 million Bitcoin-backed bond, ending what supporters hoped would make the state a pioneer in digital asset finance, according to Bitcoin Magazine.
The measure failed in a 3-2 vote after reaching its final approval stage, despite receiving a favorable rating review from Moody's and backing from Governor Kelly Ayotte and the New Hampshire Business Finance Authority. Had it moved forward, officials said it would have been the first municipal bond in the world secured by Bitcoin.
The report notes that supporters argued the transaction would not put taxpayers at risk. Instead, it would have connected private investors with a private borrower using Bitcoin as collateral, while allowing the state to collect fees that could fund small business, housing, child care, and economic development initiatives if the deal proved successful.
Skeptics, however, questioned whether New Hampshire should attach its name to a financing structure built around a volatile digital asset. Councilor Karen Liot Hill said she was not opposed to cryptocurrency itself but believed the state should be cautious about endorsing a transaction tied to Bitcoin's price swings.
Business Finance Authority Executive Director James Key-Wallace rejected the idea that Bitcoin remains an "emerging" asset class, arguing it has already established itself in global finance. He also suggested the proposal
