HomeBitcoin NewsPennsylvania Introduces Bitcoin Strategic Reserve Bill

Pennsylvania Introduces Bitcoin Strategic Reserve Bill

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Pennsylvania introduced the Bitcoin Strategic Reserve Bill, which allows state funds to invest in Bitcoin, aiming to hedge against inflation and drive innovation.

Pennsylvania is taking a bold step into the world of digital finance. On November 12, State Representative Mike Cabell introduced the Pennsylvania Bitcoin Strategic Reserve Act of 2024. The bill proposes allowing the state treasury to invest up to 10% of crucial state funds into Bitcoin, such as the General Fund, Rainy Day Fund, and State Investment Fund. It is considered an inflation hedge and the means to build up financial buffers in a volatile economy.

Republican Mike Cabell, a representative, considers Bitcoin a long-lasting stability option. He pointed out that BlackRock & Fidelity, among other investment firms have embraced Bitcoin to hedge on risk on the market. Cabell also noted that the bill is not only about asset protection. However, it is also about making Pennsylvania the financial innovation hub. This action shows the increasing recognition of Bitcoin as an instrument of institutional finance.

The new legislation would enable Pennsylvania’s Treasurer to invest part of the states’ large amount of money—over $9.7 billion in the General Fund and $7 billion in the Rainy Day Fund—into Bitcoin. It comes as part of a broader push by Republican legislators to enter the world of cryptocurrencies. To Representative Cabell, this is an opportunity to build an economic foundation for the state’s finances and promote Pennsylvania as a state of the future digital economy.

Bitcoin Reserve Bill in Pennsylvania Could Inspire Global Government Adoption

The bill’s structure is backed by the Satoshi Action Fund, which promotes using Bitcoin. The bill was described as a “historic step for Pennsylvania” by Dennis Porter, the group’s CEO. He pointed out that Bitcoin could be an inflation and monetary debasement hedge. Porter said that by adopting a Bitcoin reserve, the state could establish a new benchmark for financial advancement and security in the US. Further, he said that this could be the beginning where other states or countries follow suit.

Another influential personality is Mike Novogratz, the founder of Galaxy Digital, who also wanted to comment on the increasing use of Bitcoin at the state and national levels. Novogratz speculated that a national Bitcoin reserve under President-elect Donald Trump is unlikely. However, the move by Pennsylvania aligns with a global shift toward embracing digital assets. Some countries, such as El Salvador and Bhutan, have already included Bitcoin in their government treasury.

Ultimately, the Pennsylvania Bitcoin Strategic Reserve Act is a critical milestone in integrating Bitcoin into government finance. As a result, it could inspire other states to adopt similar strategies.

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