Ohio is becoming the focal point of attention in the cryptocurrency community with Representative Derek Merrin introducing Bill 703 – also known as the Ohio Bitcoin Reserve Act. This bill proposes establishing a fund $BTC in the state treasury while empowering the state treasurer to independently decide on Bitcoin investments.
Bitcoin: Protecting Public Assets Against Inflation
According to Representative Derek Merrin, the USD is rapidly depreciating, causing public assets to lose value. Bitcoin is seen as a potential solution to protect this capital. He stated on platform X (formerly Twitter):
"The state treasurer needs the flexibility to invest in Bitcoin to protect public assets from depreciation. Ohio needs to embrace new technologies to safeguard the budget from erosion."
Bill 703 amends several provisions in the revised code of #ohio , but does not mandate the state treasury to specifically invest in Bitcoin or define asset allocation ratios.
Strategic Direction for Ohio
If passed, Ohio will join other states like #Pennsylvania and #Texas in adopting a Bitcoin reserve strategy.
• Pennsylvania: In November 2024, Representative Mike Cabell proposed the Strategic Bitcoin Reserve Bill, aiming to allocate up to 10% of the state treasury's reserves to invest in Bitcoin to combat inflation.
• Texas: Recently, Representative Giovanni Capriglione introduced Bill 1598, proposing to establish a strategic Bitcoin fund through donations and allowing the use of Bitcoin for tax and fee payments.
Opportunities and Challenges
The Ohio Bitcoin Reserve Act not only paves the way for diversifying the state treasury's investment portfolio but also promotes widespread acceptance of cryptocurrency. However, risks remain, particularly the price volatility of Bitcoin and unstable legal status.
Future Prospects
Merrin expects the federal government under President Donald Trump to promote a nationwide Bitcoin reserve program, as proposed by Senator Cynthia Lummis (Wyoming).
Although the bill was introduced late in the current legislative session, Merrin hopes this will serve as a foundation for lawmakers to continue discussions and refinements in 2025.
Ohio is positioning itself as one of the pioneering states in the U.S. in utilizing Bitcoin as a tool to protect public assets, laying the groundwork for a new and promising financial strategy.