Ohio has just become the third state in the U.S. to propose establishing a Bitcoin reserve fund, opening up the opportunity for the state government to buy and hold this cryptocurrency as part of its asset management strategy.
On December 17th, Ohio House Republican Leader Derek Merrin presented House Bill 703 (HB 703), temporarily called the 'Ohio Bitcoin Reserve Act.' According to the bill, the state treasurer will be authorized, but not required, to use Bitcoin as an asset allocation tool to protect the budget against inflation risks.
Ohio follows Texas and Pennsylvania in proposing similar initiatives, reflecting growing concerns about the declining value of the USD. Legislators in many states are seeking creative solutions to tackle economic instability and preserve the budget.
Source: Derek Merrin
Because it was proposed near the end of the 135th session of the Ohio General Assembly, Bill HB 703 will serve as a legal framework for the next legislative session, starting on January 6, 2025, and lasting for two years. If not passed by December 31st, the bill will need to be reintroduced.
Representative Derek Merrin emphasized: “The USD is rapidly losing value, and the state treasurer needs the flexibility to invest in Bitcoin when necessary. This is a step forward to protect our tax budget from the impacts of inflation and promote the adoption of advanced technology.”
Before Ohio, on December 12th, Texas State Representative Giovanni Capriglione introduced the 'Texas Strategic Bitcoin Reserve Act,' requiring the state budget to hold Bitcoin for at least 5 years as a reserve asset.
Meanwhile, on November 12th, Pennsylvania State Representative Mike Cabell proposed a bill allowing the state treasury to hold up to 10% of its assets in Bitcoin, citing that this cryptocurrency has the potential to serve as a safeguard 'stability during economic instability.'
