New Hampshire Rejects Bitcoin-Backed Bond Proposal

New Hampshire has rejected a proposal to issue $100 million in municipal bonds backed by Bitcoin. The state's Executive Council voted against the plan by a narrow margin of 3–2.

The proposal was supported by Governor Kelly Ayotte and the New Hampshire Business Finance Authority. If approved, it would have become the world's first municipal bond issuance backed by Bitcoin. The plan had also received a favorable assessment from Moody's.

Opponents argued that Bitcoin remains too volatile to serve as collateral for a public financing project. Karen Liot Hill said she is not opposed to cryptocurrencies, but does not believe the state should endorse this type of initiative.

James Key Wallace, Executive Director of the Business Finance Authority, strongly defended the proposal. He emphasized that taxpayers would not have been exposed to any financial risk. Under the plan, private investors would have funded a private borrower, while Bitcoin would have served solely as collateral.

According to Wallace, even a significant drop in Bitcoin's price would not have cost the state a single dollar. On the other hand, if Bitcoin appreciated over the three-year term, New Hampshire could have earned millions of dollars in fees. Those funds were intended to support small businesses, affordable housing, childcare programs, and broader economic development.

Governor Kelly Ayotte also pointed out that she signed legislation last year allowing the state to invest public funds in Bitcoin. The move made New Hampshire the first U.S. state to adopt a law establishing a strategic Bitcoin reserve.

Council members Karen Liot Hill, Janet Stevens, and David Wheeler voted against the proposal, while Joseph Kenney and John Stephen voted in favor. Despite the setback, James Key Wallace said a similar proposal could return for consideration in the future.