Ohio has just become the third U.S. state to propose the establishment of a Bitcoin reserve fund, opening up the opportunity for the state government to purchase and hold this cryptocurrency as part of its asset management strategy.
On 17/12, the Republican leader in the Ohio House of Representatives, Mr. Derek Merrin, presented House Bill 703 (HB 703), temporarily called the "Ohio Bitcoin Reserve Act." According to the bill's content, the state treasurer will be authorized, but not required, to use Bit as an asset allocation tool to protect the budget from the risk of inflation.
Ohio is following in the footsteps of Texas and Pennsylvania in introducing similar initiatives, reflecting growing concerns about the declining value of the U.S. dollar. Lawmakers in many states are seeking creative solutions to address economic instability and preserve state budgets.
As it was proposed near the end of the 135th General Assembly session of Ohio, HB 703 will serve as a legal framework for the next legislative session, which will begin on 6/1/2025 and last two years. If not passed before 12/31, the bill will have to be reintroduced.
Mr. Derek Merrin emphasized: "The U.S. dollar is rapidly losing value, and the state treasurer needs the flexibility to invest in Bit when necessary. This is a step forward to protect our tax budgets from the impacts of inflation and promote the adoption of advanced technology."
Prior to Ohio, on 12/12, Texas State Representative Mr. Giovanni Capriglione introduced the "Texas Strategic Bit Reserve Act," requiring the state budget to hold Bit for at least 5 years as a reserve asset.
Meanwhile, on 12/11, Pennsylvania State Representative Mr. Mike Cabell proposed a bill allowing the state treasury to hold up to 10% of its assets in Bit, arguing that this cryptocurrency could serve as a "stabilizing measure during times of economic instability."
