Pennsylvania Introduces Bill to Create National Bitcoin Reserve, Hoping to Set a Precedent

President-elect Donald Trump's proposal to create a national bitcoin reserve is gaining popularity across the country as several states are now considering implementing their own cryptocurrency reserves.

President-elect Donald Trump’s proposal to create a national bitcoin reserve is gaining steam across the U.S., with several states now considering their own cryptocurrency war chests.

In a striking move, the Pennsylvania House of Representatives on Thursday introduced a bill that would allow the state to hold bitcoin as a reserve asset on its balance sheet. Pro-crypto senators are also hoping to push through a bitcoin reserve bill at the national level within the first 100 days of Trump’s presidency.

The new bill, called the Pennsylvania Bitcoin Strategic Reserve Act and introduced in the Pennsylvania House on Thursday, is the first of its kind and would allow the state’s treasury to allocate up to 10% of its roughly $7 billion state funds into bitcoin as a way to help fight inflation and diversify its investments beyond traditional assets like bonds and cash reserves, FOX Business reported.

“The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future,” Republican Pennsylvania state Rep. Mike Cabell, the bill’s sponsor, told FOX Business.

“By integrating bitcoin into the reserves, we are not only protecting Pennsylvania from the relentless impact of inflation but also positioning the state as a leader in financial resilience and innovation,” he added.

Notably, Pennsylvania is the first state to introduce legislation that would allow it to directly purchase bitcoin. In the meantime, the Michigan and Wisconsin state pension funds have both started purchasing small stakes in some of Wall Street’s bitcoin exchange-traded funds, which allow investors to gain exposure to bitcoin without directly buying it.

Pennsylvania’s move marks a major step toward the broader acceptance of bitcoin as a financial reserve. As an inflation-resistant asset, bitcoin could add value to Pennsylvania’s financial reserves over time.

The proposed legislation comes amid a broader trend in the U.S. and internationally, as various governmental and institutional entities are increasingly viewing bitcoin as a hedge against inflation and currency devaluation. If passed, the bill could set a precedent for other states considering similar moves.

Bitcoin has broken records and reached an all-time high of more than $93,000, driven by optimism around Trump’s promises to make the U.S. the “crypto capital of the planet” and bitcoin a “permanent national asset.” It is now the world’s seventh-largest asset, behind gold and five U.S. tech giants: Nvidia, Apple, Microsoft, Amazon and Google.

The above is the detailed content of Pennsylvania Introduces Bill to Create National Bitcoin Reserve, Hoping to Set a Precedent. For more information, please follow other related articles on the PHP Chinese website!