December 18, 2024
Ohio Representative Derek Merrin has introduced House Bill 703, which aims to create a state-backed Bitcoin reserve within the Ohio Treasury.
Merrin announced the bill on social media, stating that the initiative would give the state treasurer the authority and flexibility to invest in Bitcoin. In his view, this would create a framework for the Ohio government to leverage Bitcoin’s potential to boost the state’s public finances.
Derek Merrin Calls for a Bitcoin Reserve in Ohio
Merrin emphasized that with the US dollar facing devaluation, Bitcoin offers a way to diversify the state's portfolio and protect public funds from loss of value.
“Today, I introduced HB 703 to create an Ohio Bitcoin Reserve within the state treasury! It gives the state treasurer the authority and flexibility to invest in Bitcoin. This legislation creates the framework for Ohio government to leverage the power of Bitcoin to strengthen the state’s finances. With the US dollar devaluing, Bitcoin provides a way to shore up the state’s wallet and keep public funds from losing value,” Merrin shared on Twitter.
The legislative move is in line with a broader trend among U.S. states to explore integrating Bitcoin into their financial strategies. In Pennsylvania, for example, lawmakers have proposed a bill to create a Bitcoin reserve. They see it as a hedge against inflation and a tool for financial diversification.
The national debate over Bitcoin reserves has given impetus to such initiatives. During his campaign, President-elect Donald Trump proposed creating a U.S. strategic reserve of Bitcoin. He suggested that the government would buy large amounts of Bitcoin to bolster national financial stability.
Additionally, Senator Cynthia Lummis has proposed selling portions of the Federal Reserve’s gold reserves to fund the purchase of Bitcoin. This signals a shift in how some policymakers view the role of digital assets in national reserves.
Interest in Bitcoin reserves is not limited to the United States. In Poland, political leader Sławomir Menczyn has pledged to create a Bitcoin reserve if his party comes to power, viewing it as a strategic financial asset. Japan is also considering following America’s lead in creating a Bitcoin reserve.
Similarly, Russia is considering creating a strategic Bitcoin reserve to promote financial stability, signaling a shift toward adopting digital assets. At the municipal level, Vancouver City Council in Canada approved a proposal to explore creating a Bitcoin reserve, signaling an openness to integrating cryptocurrencies into local government financial strategies.
“The only good thing Biden could do before leaving office is to sell all the Bitcoin currently held by the U.S. government. Not only would the money raised reduce the 2024 budget deficit, it would put an end to all the nonsense about creating a harmful ‘strategic’ Bitcoin reserve,” Schiff said.
Elsewhere, billionaire investor Mike Novogratz has expressed skepticism about the possibility of the U.S. government creating a Bitcoin reserve. As BeInCrypto reported, he cited concerns about the digital currency’s volatility and regulatory uncertainty.
“It’s a slim possibility. While Republicans control the Senate, they don’t have nearly 60 seats. I think it would be very smart for the US to take the Bitcoin they have and maybe add some to it… I don’t necessarily think the dollar needs anything to back it up,” Novogratz claimed.
