The US state of Ohio has taken a bold step towards integrating Bitcoin into its financial strategy by introducing a new bill that would allow it to create a “Strategic Bitcoin Reserve.” The bill, supported by six co-sponsors, is designed to protect the state’s funds against inflation and ensure the long-term stability of its financial assets.
The basic details of the bill were determined as follows:
- Fund Allocation: The proposed legislation would allow Ohio to allocate up to 10% of its general fund, budget stabilization fund, and awards trust fund to Bitcoin.
- Custody Solutions: The bill outlines robust custody requirements to ensure the security of the reserve. Ohio will use either self-custody or a qualified custodian to manage its digital assets.
- Technology-Neutral Approach: To minimize political friction and ensure swift action, the bill adopts a technology-neutral stance by using the term “digital asset” rather than singling out Bitcoin. However, its stringent requirements ensure that Bitcoin is currently the only cryptocurrency eligible.
- Eligibility Criteria: In order for a digital asset to be eligible to be included in the reserve, it must have a market value of at least $750 billion based on a 12-month average.
The bill received significant traction with strong support from the state government and six co-sponsors, increasing its chances of becoming law.
*This is not investment advice.
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