New Hampshire proposes Bitcoin-backed municipal bond

4 min read

New Hampshire officials are seeking executive council approval to let the quasi-governmental Business Finance Authority issue a $100 million municipal bond backed by Bitcoin and repaid by a private borrower rather than the state. Governor Kelly Ayotte called the plan historic and a way to attract blockchain investment without using taxpayer funds. Moody's gave a provisional Ba2 rating, labeling the bonds speculative, and a finance academic said Bitcoin price swings would likely trigger the bond's liquidation provision during the three-year term. If approved, the structure could serve as a proof of concept but raises questions about credit risk and reputational exposure.

The plan would issue a $100 million Bitcoin-backed municipal bond.