Ohio Follows Pennsylvania, Texas in Pursuing State-Level Bitcoin Reserves
2024-12-19
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Ohio State Representative Derek Merrin has introduced House Bill 703, known as the Ohio Bitcoin Reserve Act, in a bid to authorize the state treasurer to invest public funds in BTC.
The latest initiative is announced as part of Merrin’s broader vision to leverage innovative financial solutions. The legislation provides the framework for Ohio to incorporate Bitcoin into its state treasury portfolio.Ohio Bitcoin Reserve Act
Merrin highlighted concerns about the ongoing devaluation of the US dollar, positioning Bitcoin as a strategic reserve asset to preserve state funds’ value and supplement the existing financial framework. While the bill does not mandate the purchase of Bitcoin, it gives the State Treasurer the authority and flexibility to make such investments as part of asset allocation decisions.
He stated,
“Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money – it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances.”
The bill also anticipates further federal-level efforts, referencing potential proposals from lawmakers like Senator Cynthia Lummis to establish a national Bitcoin reserve under the incoming administration.
Supporters like Andrew Burchwell, Executive Director of the Ohio Blockchain Council, also highlighted Bitcoin’s increasing adoption as a reserve asset globally, praising the legislation for positioning Ohio as a leader in this movement.State Bitcoin Reserves
Merrin’s proposal to create a Bitcoin reserve positions Ohio alongside other states pursuing similar initiatives.
For instance, in Pennsylvania, Republican Reps. Mike Cabell and Aaron Kaufer introduced the “Pennsylvania Bitcoin Strategic Reserve Act” in November. The bill allows the treasury to allocate up to 10% of the state’s $7 billion fund into Bitcoin to hedge against inflation and reduce reliance on traditional investments like bonds and cash reserves.
In Texas, Republican Rep. Giovanni CapriglionefiledHouse Bill 1598, establishing a strategic Bitcoin reserve account funded entirely through donations. Unlike Pennsylvania’s approach, the assets in Texas’s reserve would be held for up to five years.