To diversify public money, Pennsylvania lawmakers have introduced a bill to make Bitcoin a reserve asset.
Source: CryptoSlate
Important Takeaways:
- Legislation to invest up to 10% of state funds in Bitcoin was introduced by the Pennsylvania House.
- The Satoshi Action Fund is influencing ten additional states to pursue similar Bitcoin laws.
The Pennsylvania House of Representatives ( sponsored the “Pennsylvania Bitcoin Strategic Reserve Act”according to Fox Business). This measure seeks to diversify the state treasury’s investments by allowing up to 10% of the $7 billion fund to be dedicated to Bitcoin.
The bill’s proponent, Rep. Mike Cabell, describes it as a forward-thinking effort to protect Pennsylvania against inflation. This legislation also seeks to accord with broader national trends in the adoption of digital assets.
“A revolutionary step toward safeguarding our state’s financial future is the Pennsylvania Bitcoin Strategic Reserve Act,” Cabell stated.
Pennsylvania would be the first state in the US to accept bitcoin directly as part of its treasury if the bill is approved.
Why Bitcoin? Protect Yourself from Inflation and Diversify
The concept highlights the function of Bitcoin as a “financial hedge.” According to Rep. Cabell, Bitcoin provides defense against unstable economies. This is relevant given inflation affects how traditional financial assets.
Image: Pennsylvania State Representative
By expanding the state’s holdings beyond bonds and cash reserves, Pennsylvania might profit from Bitcoin’s rise. The long-term consequences of inflation on public funds may be lessened with this diversification.
Cabell referenced worldwide patterns in a memo submitted this week, pointing out that big banks like Fidelity and BlackRock already provide Bitcoin choices. ETFs in their pension funds have been used to investigate Bitcoin in other U.S. states, including Michigan and Wisconsin.
Pennsylvania’s proposal to directly handle Bitcoin is a bolder move. Proponents believe that this might propel the state to the forefront of financial innovation.
Mike Cabell and Others Advocate for Government Reserves of Bitcoin
Cabell supports the idea of a strategic reserve of Bitcoin. Senator Cynthia Lummis of Wyoming’s proposal for a federal Bitcoin reserve is in line with this notion. According to Lummis, having such a reserve would improve America’s financial standing. It would guarantee open administration of the government’s Bitcoin reserves.
Cynthia Lummis United States Senator (Source: CoinMarketCap
According to a July 2024 statement from Lummis, “Bitcoin is transforming not only our country but the world, and becoming the first developed nation to use Bitcoin as a savings technology secures our position as a global leader in financial innovation.”
“We will have regulations, but going forward, those who love your industry, not those who hate it, will write the rules,” Trump said to delegates of the Bitcoin 2024 Conference.
