Ohio State Representative Derek Merrin has introduced House Bill 703, aiming to establish a state-backed Bitcoin reserve within Ohio’s treasury.
Announcing the bill on social media, Merrin stated that this initiative would grant the state treasurer the authority and flexibility to invest in Bitcoin. In his opinion, this would create a framework for Ohio’s government to leverage Bitcoin’s potential to strengthen state finances.
Derek Merrin Advocates Bitcoin Reserve in Ohio State
Merrin emphasized that as the US dollar faces devaluation, Bitcoin offers a means to diversify the state’s portfolio and protect public funds from losing value.
“Today, I filed HB 703 to create the Ohio Bitcoin Reserve within the state treasury! Provides state treasurer authority & flexibility to invest in Bitcoin. This legislation creates the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances. As the US dollar undergoes devaluation, Bitcoin provides a vehicle to supplement our state’s portfolio and preserve public funds from losing value,” Merrin shared on X (Twitter).
This legislative move aligns with a broader trend among US states exploring the incorporation of Bitcoin into their financial strategies. In Pennsylvania, for example, lawmakers have proposed a bill to establish a Bitcoin reserve. They view it as a hedge against inflation and a tool for financial diversification.
Similarly, Texas has seen legislative efforts advocating for the creation of a state Bitcoin reserve. Taken together, these interests reflect a growing interest in cryptocurrency as a component of state financial management.
National discussions on Bitcoin reserves have invigorated the momentum for such initiatives. During his campaign, President-elect Donald Trump proposed the creation of a US strategic Bitcoin reserve. He alluded to the government purchasing significant amounts of Bitcoin to bolster national financial stability.
Additionally, Senator Cynthia Lummis has proposed selling portions of the Federal Reserve’s gold holdings to fund the acquisition of Bitcoin. This indicates a shift in how some policymakers view the role of digital assets in national reserves.
Prospects at National and Municipal Level Beyond the US
Bitcoin reserve interests are not confined to the United States. In Poland, political leader Sławomir Mentzen pledged to create a Bitcoin reserve if his party comes to power, viewing it as a strategic financial asset. Japan is also considering following America’s lead on establishing a Bitcoin reserve.
Similarly, Russia is contemplating the creation of a strategic Bitcoin reserve to enhance financial stability, indicating a shift towards embracing digital assets. On a municipal level, the Vancouver City Council in Canada has approved a motion to explore the establishment of a Bitcoin reserve. This signals an openness to integrating cryptocurrency into local government financial strategies.
Proponents argue that Bitcoin can serve as a hedge against inflation and currency devaluation. On the other hand, critics caution against the risks associated with its volatility and regulatory challenges.
Among them is economist Peter Schiff who has advised against such moves. He urged the government to divest from Bitcoin, warning of potential financial risks associated with its adoption.
“The one good thing Biden can do before leaving office is sell all the Bitcoin currently held by the US Govt. Not only would the money raised reduce the 2024 budget deficit, but it would put an end to all the nonsense about creating a harmful ‘Strategic’ Bitcoin Reserve,” Schiff stated.
Elsewhere, Billionaire investor Mike Novogratz has expressed skepticism about the likelihood of the US government establishing a Bitcoin reserve. As BeInCrypto reported, he cited concerns over the cryptocurrency’s volatility and regulatory uncertainties.
“It’s a low probability. While the Republicans control the Senate, they don’t have close to 60 seats. I think that it would be very smart for the United States to take the Bitcoin they have and maybe add some to it… I don’t necessarily think that the dollar needs anything to back it up,” Novogratz claimed.
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