Executive Council in New Hampshire rejects $100m Bitcoin-backed bond proposal
July 9, 2026
The New Hampshire Executive Council made a significant decision on Wednesday regarding a proposal for a $100 million bond backed by Bitcoin. Despite being hailed as a groundbreaking and historic move by the New Hampshire Business Finance Authority and Governor Kelly Ayotte, the councilors were not convinced. In a close 3-2 vote, the council rejected the proposal.
During the council meeting, the lone Democrat, Karen Liot Hill, expressed her concerns about the proposal. While she acknowledged that she was not opposed to Bitcoin or cryptocurrency in general, Hill highlighted the risks associated with lending legitimacy to a financial transaction involving a volatile emerging asset class. James Key-Wallace, the executive director of the Business Finance Authority, defended the proposal by stating that cryptocurrencies like Bitcoin have already emerged and have been in existence for some time.
Despite Key-Wallace’s reassurances, Hill remained cautious, emphasizing the need for the council and the public to thoroughly consider the implications of the plan. She stressed the importance of taking the time to fully understand the risks involved in a Bitcoin-backed bond. Key-Wallace, however, reiterated that the proposal would not expose New Hampshire taxpayers to any financial risks. The loan agreement would facilitate a connection between private investors and a private borrower, with Bitcoin serving as collateral.
If the value of Bitcoin were to rise significantly over the three-year term of the plan, the Business Finance Authority could stand to gain millions of dollars in fees. These funds would then be reinvested into various initiatives in the state, such as supporting small businesses, child care, housing, and economic development. Key-Wallace also hinted at the possibility of more similar deals in the future.
Governor Ayotte, who previously signed a law granting the state treasurer the discretion to invest in Bitcoin, emphasized the importance of embracing technology in innovative ways to drive the state’s growth. Despite Hill’s attempt to table the proposal, the council ultimately voted against it, with Janet Stevens and David Wheeler joining her in opposition.
Following the rejection of the proposal, Key-Wallace expressed optimism about New Hampshire’s role in the digital asset economy. He acknowledged the need for some council members to further review the proposal and offered to provide additional information if necessary. While the proposal was defeated for now, Key-Wallace remains committed to presenting the idea to the council again in the future.
In conclusion, the decision by the New Hampshire Executive Council to reject the $100 million bond backed by Bitcoin reflects a cautious approach to financial innovation in the state. Despite the promise of significant returns, concerns about the risks associated with cryptocurrency investments ultimately led to the rejection of the groundbreaking proposal. The debate underscores the importance of careful consideration and due diligence when exploring new financial opportunities in the rapidly evolving digital economy.