Rep. Jordan Pace has introduced legislation to create a Bitcoin reserve in South Carolina, joining a nationwide effort. Nearly half of all U.S. states now have legislation to create similar reserves.
But the bill’s argument that “10% of state funds could be invested in Bitcoin” is quickly gaining traction, which could spook fiscal conservatives who have been blamed for recent failures.
South Carolina Joins Bitcoin Reserve Race
Since President Trump announced his intention to create a U.S. Bitcoin reserve , many states have attempted to create smaller models.
In the past month, these efforts have been intensifying , with more and more states joining in . Today, South Carolina has introduced its own Bitcoin reserve bill that would allow the state to make significant purchases:
“The Treasurer may invest in digital assets, including Bitcoin. The amount of money that may be invested in digital assets from the funds specified in this section may not exceed 10% of the total funds under management,” it states.
State Rep. Jordan Pace has proposed a Bitcoin reserve bill in South Carolina. He argues that the bill “gives the Treasurer a new tool to protect taxpayers’ money from inflation, ” which is one of the most well-known use cases for cryptocurrencies. Pace is currently the sole sponsor of the bill, and its chances of passage are uncertain.
There may still be challenges ahead: Similar proposals in other Republican-led states, such as Montana and Wyoming, have already failed due to concerns about using state funds to buy cryptocurrencies.
Even though Trump supports the idea at the national level, not all Republicans are convinced at the state level.
There are signs of progress elsewhere, however. Texas, for example, has advanced a Bitcoin reserve bill that has won bipartisan support. A key reason for its success is that the bill does not require the state to purchase cryptocurrencies, but only allows them at the discretion of the treasurer.
Likewise, South Carolina’s bill does not mandate that the state invest 10% of its funds in Bitcoin. It merely opens up the possibility and provides the state with financial flexibility.
