The momentum for cryptocurrency adoption is increasing, as various states investigate using public funds to acquire Bitcoin. North Dakota has recently entered the discussion, with both legislative chambers approving a proposal.
House Concurrent Resolution No. 3001, introduced by a group of six legislators, calls for the state’s Legislative Assembly to consider investing in digital assets to promote economic development and combat inflation.
This resolution urges the state’s investment board and treasurer to diversify reserve funds to include digital assets such as Bitcoin.
Source: North Dakota State Legislature
Utilizing Cryptocurrency To Revitalize The Economy And Combat Inflation
On July 27, 2024, Wyoming Senator Cynthia Lummis attended the Nashville Bitcoin Conference, presenting the Bitcoin Reserve Bill. During her announcement, Lummis asserted that this initiative should be seen as the nation’s “Louisiana Purchase,” serving to enhance U.S. competitiveness in the cryptocurrency arena and help mitigate inflation.
Support is growing for this initiative among various states, with North Dakota being the latest participant in these discussions.
The sponsor of the resolution indicates that inflation is the primary economic challenge for the state, diminishing the purchasing power of state funds and impacting financial stability.
Consequently, it is essential for North Dakota to invest in a reliable store-of-value asset like Bitcoin to safeguard its financial resources.
State Legislature Urges Treasurer To Broaden Investment Strategy
The sponsors of the resolution believe that one approach to tackle inflation’s impact is through diversification of state assets. They have emphasized that responsible investment and effective use of state resources are crucial in today’s evolving economic landscape. Thus, they have instructed the State Treasurer and State Investment Board to allocate a portion of the funds for purchasing Bitcoin and precious metals.
Moreover, the resolution’s advocates underline the fundamental importance of investment diversification in safeguarding state finances against economic challenges, particularly inflation.
Although the resolution does not require immediate compliance from the State Treasurer, it signifies the rising relevance of cryptocurrency in economic strategy.
State-Level Bitcoin Reserve is Building Momentum
North Dakota is joining other states that are actively considering the inclusion of Bitcoin and other cryptocurrencies in their reserves. For instance, Pennsylvania has already initiated plans to invest in Bitcoin reserves, proposing to allocate 10% of its $7 billion emergency fund for this purpose.
Additionally, Florida has revealed intentions to incorporate Bitcoin into its financial framework. Chief Financial Officer Jimmy Patronis has proposed establishing a reserve utilizing a portion of Florida’s retirement funds for Bitcoin purchases. Other states such as Texas and Alabama have also shown interest in developing a cryptocurrency reserve.
Featured image from Getty Images, chart from TradingView
