New Hampshire submits proposal for bitcoin bond initiative
July 9, 2026
New Hampshire recently faced a significant decision as its executive council blocked a plan to issue municipal bonds backed by bitcoin. The proposal had been in development for a year and had received approval from the governor, as well as a rating. However, the council decided that the state should not support the issuance of such bonds, citing concerns about legitimizing a volatile financial transaction and emerging asset class.
“This is facilitating a private loan, essentially,” Councilor Karen Liot Hill remarked during the hearing. The council expressed apprehension about the potential risks and volatility associated with cryptocurrencies and did not want New Hampshire to lend credibility to such a transaction. The New Hampshire Business Finance Authority was seeking to issue a $100 million deal on behalf of a bitcoin mining company with hopes of forging a new path for collaboration between cryptocurrency and the municipal finance sectors.
Ultimately, the executive council voted 3-2 to veto the proposal. However, BFA Executive Director James Key Wallace remains committed to providing any necessary information for future reconsideration. He believed that the deal could have positioned New Hampshire as a cryptocurrency-friendly state and attracted others to follow suit. While other states had expressed interest in similar arrangements, New Hampshire was in a unique position to lead the way in diversifying investment opportunities.
Providing insight into the structure of the proposed deal, Key Wallace explained how investors would have been able to benefit from a potential increase in bitcoin value without bearing any downside risk, as all bonds would be liquidated if the value dropped below a certain threshold. Despite being an innovative approach, councilors raised concerns about the complexity and speculative nature of the transaction, especially given its substantial size.
Firmly believing in the potential benefits of the deal, Governor Kelly Ayotte advocated for its approval, emphasizing the opportunity to attract investment without risk to state funds or taxpayer dollars. However, Councilor Liot Hill made a motion to table the proposal, expressing a need for more time to review and comprehend the intricate details of the transaction. Despite her efforts, the motion was not seconded, leading to the eventual veto of the proposal.
The decision not to move forward with the bitcoin-backed bonds reflects the council’s cautious approach when considering innovative and potentially risky financial instruments. While the proposal aimed to introduce groundbreaking investment opportunities to the state, it also raised questions about New Hampshire’s role in endorsing emerging asset classes. As the cryptocurrency industry continues to evolve and transform, states like New Hampshire remain vigilant in their decision-making processes when it comes to embracing new financial opportunities.