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It’s not the first time the idea of a US Bitcoin reserve has been floated, but it appears to be gaining more acceptance as states begin to adopt the concept for their own treasuries. Incoming President-elect Donald Trump proposed creating a strategic reserve in August, wherein the government would hold this Bitcoin for at least 20 years unless its sale was necessary to finance a reduction in public debt.
Countries like El Salvador have already embraced the cryptocurrency. By November, it was reported that the Central American nation held nearly 5,932 Bitcoin (BTC), and was sitting on over $93 million of unrealized profits. However, it is planning to scale back its program as it attempts to reach an agreement with the International Monetary Fund over a $1.4 billion loan package.
Texas’ potential bitcoin reserve
It seems that Texas has opened up the state to accept donations of Bitcoin. The Lone Star State has introduced a bill that says: “This fund allows the state to own Bitcoin as a financial asset and for Texans to voluntarily donate Bitcoin to promote a shared ownership and community investment in Texas’s financial future.”
The HB 1598 bill, introduced by Republican state representative Giovanni Capriglione, explains that a “strategic Bitcoin reserve aligns with Texas’s commitment to fostering innovation in digital assets and providing Texans with enhanced financial security.”
#txlege #letsgo https://t.co/aupHskf1Qr
— Giovanni Capriglione (@VoteGiovanni) December 13, 2024
Texas has a large supply of cheap electricity, particularly from renewable sources, which could be used to power Bitcoin mining operations, potentially generating significant revenue for the state. However, the state has been experiencing economic volatility, and establishing a Bitcoin reserve could help mitigate this by being funded through donations, fees, or taxes.
Last month, Capriglione told CNBC: “Probably the biggest enemy of our investments is inflation.
“A strategic bitcoin reserve, investing in bitcoin, would be a win-win for the state.”
Pennsylvania
In November, Pennsylvania Representative Mike Cabell introduced legislation to establish the Pennsylvania Bitcoin Strategic Reserve, with the goal of diversifying the state’s financial holdings by allocating up to 10% of its treasury reserves to Bitcoin. This would have allowed the treasury to purchase nearly $1 billion worth of Bitcoin.
State lawmakers announced in a legislative memo dated November 12: “Bitcoin has appreciated significantly over the years and can help Pennsylvania keep pace with inflation and economic changes.”
That said, the representatives who introduced the bill didn’t make it through the primaries, so it’s unclear if it’s still moving forward.
Ohio
In December, Ohio Representative Derek Merrin introduced a bill to set up a strategic Bitcoin reserve for the state.
The proposed Ohio Bitcoin Reserve Act calls for the creation of a dedicated Bitcoin fund within the state treasury and gives the Ohio Treasurer the authority to decide when and how to purchase the asset.
🚨Today, I filed HB 703 to create the Ohio Bitcoin Reserve within the state treasury!
Provides state treasurer authority & flexibility to invest in #Bitcoin
This legislation creates the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our… pic.twitter.com/hSWas2qeQd
— Derek Merrin (@DerekMerrin) December 17, 2024
He wrote on X: “This legislation creates the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances.
“As the US dollar undergoes devaluation, #Bitcoin provides a vehicle to supplement our state’s portfolio and preserve public funds from losing value.”
Although some details about how the reserves would function are still unclear, the legislation is expected to serve as a blueprint for Ohio lawmakers moving forward in 2025.
New Hampshire
On Friday (Jan. 10), New Hampshire Representative Keith Ammon introduced a bill proposing the creation of a “strategic reserve” that would let the state treasury invest in precious metals like gold, silver, and platinum, as well as digital assets, including Bitcoin.
While Bitcoin isn’t specifically named in the bill, it’s currently the only cryptocurrency that meets the required high market value threshold.
BIG BREAKING: A bill to create a ‘Strategic Bitcoin Reserve’ has been introduced in the State of New Hampshire by @RepKeithAmmon. pic.twitter.com/5lAqFpopda
— Dennis Porter (@Dennis_Porter_) January 10, 2025
The bill also aims to establish guidelines for “qualified custodians” and “secure custody solutions” to ensure digital assets are stored safely and managed through regulated trading products.
Ammons told Decrypt: “The state that is last to build Bitcoin reserves will lose.
“It’s urgent that states act sooner than later, and that takes some education on the part of state officials.”
North Dakota
Apart from New Hampshire, North Dakota representatives also filed a resolution on Friday (Jan. 10), aimed at “investing a portion of state funds in digital assets and precious metals.”
Resolution 3001 aims to help protect the state’s finances from the effects of inflation by diversifying its investment portfolio. The resolution states: “Given the changing economic conditions and emerging investment opportunities, there is a need for prudent investment of state financial resources.” While it does bring up digital assets, it does not specifically mention Bitcoin.
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