Illinois may soon become the first U.S. state to incorporate Bitcoin (BTC) into its fiscal reserves. A strategic Bitcoin reserve proposal, introduced by state legislator John Cabello, is now awaiting review by the Rules Committee.
Illinois Plans to Establish a Bitcoin Fund
On January 29, the bill was referred to the Rules Committee, which will determine its conditions and governance. If approved, Illinois would become the first U.S. state to formally adopt Bitcoin as a strategic asset.
The proposed law suggests that the Illinois State Treasurer would manage the Bitcoin fund, which could receive donations, grants, and deposits in BTC from both citizens and government entities. The reserve must be held for at least five years before any transactions, such as selling, transferring, or converting BTC to another cryptocurrency, can occur.
How Would the Bitcoin Reserve Work?
The bill also includes provisions for:
✅ Fund governance and security measures
✅ Reporting on Bitcoin reserve holdings
✅ Voluntary Bitcoin donations from residents
✅ Hiring a dedicated cryptocurrency treasurer
If passed, the Bitcoin Strategic Reserve Act would take immediate effect, making Illinois the first state in the U.S. to implement a formal Bitcoin reserve strategy.
The Growing Trend of Bitcoin Reserves Worldwide
Illinois’ proposal is not unique—more governments and institutions are considering Bitcoin as part of their reserves.
U.S. Senator Cynthia Lummis, a long-time Bitcoin advocate, has been lobbying for a national strategic Bitcoin reserve. On January 30, she announced plans to hold public hearings on Bitcoin reserves, exploring how BTC could act as a hedge against inflation and economic instability.
Other states and countries are also exploring similar initiatives:
📌 Czech Republic: The Governor of the Czech National Bank, Aleš Michl, stated that the Czech Republic may become the first country in Western Europe to include Bitcoin in its reserves. He proposed allocating up to 5% of the central bank’s reserves (140 billion EUR), equivalent to approximately 145.6 billion USD, in BTC.
📌 Texas: Governor Dan Patrick confirmed that he intends to establish a "Texas Bitcoin Reserve", making it one of his key legislative priorities for 2025.
📌 Major banks and investment funds are also increasing their Bitcoin holdings, prompting some U.S. politicians to consider aligning state and federal reserves with this trend.
Bitcoin as a New Strategic Asset?
As institutional adoption of Bitcoin grows, the question arises: Should the U.S. follow suit and integrate Bitcoin into its national and state reserves?
If Illinois approves the bill, it could set a precedent for other U.S. states to adopt Bitcoin as a strategic reserve asset, marking a significant milestone in the mainstream acceptance of cryptocurrencies.
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