Arizona lawmakers have advanced a Bitcoin strategic reserve bill, which seeks to deploy the world’s first cryptocurrency as a savings technology for the state.
The Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, was passed by the Arizona State Senate Finance Committee with a five to two vote on Jan. 27.
The bill will now move to the Senate Rules Committee for final debate and amendments. Approval by the Senate would advance the bill to the House of Representatives.
The bill proposes the creation of a strategic Bitcoin reserve by the US Treasury for “the storage of government Bitcoin holdings,” which would also allow other public funds to store their digital assets in a “secure, segregated account within the strategic Bitcoin reserve.”
The bill would allow up to 10% of a government entity’s or public fund’s capital to be invested in Bitcoin and other digital assets. It also opens the door for pension funds to allocate resources to Bitcoin, potentially increasing public interest in cryptocurrencies.
Up to 20% of Gen Z and Alpha are already open to receiving pensions in cryptocurrency, while 78% expressed greater trust in “alternative retirement savings options” over traditional pension funds, Cointelegraph reported on Jan. 16.
Arizona’s decision to include Bitcoin in its financial strategy could lead to a domino effect among other states, according to Anndy Lian, author and intergovernmental blockchain expert.
He told Cointelegraph:
“Imagine if your state decided to put some of your tax dollars into Bitcoin; it might encourage places like Texas or Pennsylvania, where they’ve already been talking about similar ideas, to jump on the bandwagon quicker.”
However, Lian cautioned that a Bitcoin reserve would require safeguards due to cryptocurrency’s volatility, noting that taxpayers could face financial risks similar to those encountered by crypto investors.
Bitcoin price to $1 million on federal Bitcoin Reserve Act?
As one of the most anticipated crypto-related bills in history, the Bitcoin Act — championed by Wyoming Republican Senator Cynthia Lummis — has generated significant excitement among investors.
The nationwide approval of a US Bitcoin reserve could push Bitcoin above the seven-figure mark as soon as this cycle, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry.
The potential approval could lead to a rapid price appreciation, as market participants have yet to price in this likelihood, wrote Back in a Nov. 18 X post.
There are at least 13 other Bitcoin reserve-related bills at various stages in states such as Massachusetts, Pennsylvania, Kansas, New Hampshire, Wyoming, Ohio, Utah and North Dakota, according to Bitcoinlaws.io.
Bitcoin reserve proposals are gaining support across the US thanks to President Donald Trump’s pro-crypto policies and recent executive order on crypto.
The success of the bill could bring an influx of new institutional Bitcoin adopters, according to Anastasija Plotnikova, co-founder and CEO of Fideum.
The regulatory expert told Cointelegraph:
“Analysts suggest it could drive Bitcoin’s price toward $500,000 while attracting institutional investors like pension and sovereign wealth funds, further legitimizing Bitcoin as an asset class.”
Source: https://cointelegraph.com/news/arizona-bitcoin-reserve-bill-passes-senate
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
