President-elect Donald Trump’s proposal to create a national bitcoin reserve is gaining popularity across the country as several states are now considering implementing their own cryptocurrency reserves.
In a remarkable development, The Pennsylvania House of Representatives introduced a bill today that, if passed, would allow the state to hold Bitcoin as a reserve asset on its balance sheet. The pro-crypto senators are hoping to push through a bitcoin reserve bill on the national level during the first 100 days of Trump’s presidency.
The new bill called the Pennsylvania Bitcoin Strategic Reserve Act, introduced in the Pennsylvania House of Representatives on Thursday, is the first of its kind and would allow the state’s treasury to allocate up to 10% of its roughly $7 billion state funds into bitcoin as a way to help fight inflation and diversify its investments beyond traditional assets like bonds and cash reserves, as per a report from FOX Business.
Financial Resilience And Innovation
“The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future,” Republican Pennsylvania state Rep. Mike Cabell, the bill’s sponsor, told FOX Business.
He further emphasized that by integrating Bitcoin into the reserves, they are not only protecting Pennsylvania from inflation’s relentless impact but also positioning the state as a leader in financial resilience and innovation.
Impressively, Pennsylvania is the first state to introduce legislation that would allow it to purchase Bitcoin directly. Meanwhile, Michigan and Wisconsin state pension funds have started purchasing small stakes in some of Wall Street’s bitcoin exchange-traded funds, allowing investors exposure to bitcoin without directly buying it.
Pennsylvania’s move signals a significant step toward broader acceptance of Bitcoin as a financial reserve. As an inflation-resistant asset, Bitcoin could add value to Pennsylvania’s financial reserves over time.
Pennsylvania To Set A Precedent
The proposed legislation corresponds with a broader movement in both the U.S. and internationally, as various governmental and institutional entities are increasingly viewing Bitcoin as a hedge against inflation and currency devaluation. If this legislation passes, Pennsylvania could set a precedent for other states considering similar moves.
Bitcoin has been breaking its records and has reached an all-time high of more than $93,000, propelled by optimism around Trump’s promises to make the U.S. the “crypto capital of the planet” and Bitcoin a “permanent national asset.” It is now the world’s seventh-largest asset behind gold and five U.S. tech giants, including Nvidia, Apple, Microsoft, Amazon and Google.
Source: coinpedia.org
