Missouri Introduces Bitcoin Reserve Fund: The Future of State Investments?
Missouri Introduces Bitcoin Reserve Fund – On February 6, Missouri Representative Ben Keathley introduced House Bill 1217 (HB 1217), which proposes the establishment of a Bitcoin Strategic Reserve Fund to diversify the state’s investment portfolio. If signed into law, the bill would allow Missouri to hold and invest in Bitcoin (BTC) as a hedge against inflation in fiat currency.
Bitcoin Reserve Fund and Hodl Strategy
The proposed Bitcoin Strategic Reserve Fund would be managed by the Missouri state treasurer. Keathley’s bill suggests that the state could receive Bitcoin through gifts and donations from governmental entities or Missouri residents. The fund would be intended for long-term storage, and the state treasurer would be required to hold all Bitcoin assets for at least five years before any potential sale.
Keathley also proposes that all government entities in Missouri be required to accept cryptocurrency for certain payments, such as taxes, fees, and fines, provided the Department of Revenue approves these uses. While Missouri residents could pay using cryptocurrency, they would need to cover any associated transaction fees.
The Role of the State Treasurer in Bitcoin Investments
The bill grants Missouri’s state treasurer the authority to invest state funds into Bitcoin, thus giving the treasurer significant control over the state’s cryptocurrency holdings. HB 1217 also makes clear that the Missouri Treasurer can use state funds to purchase, invest in, and hold Bitcoin in the strategic reserve, further diversifying the state’s assets.
Potential Impact on Missouri’s Economy and Future Prospects
The HB 1217 bill is expected to have an impact on Missouri’s economy by offering a hedge against inflation and the volatility of traditional fiat currencies. If passed, this initiative will put Missouri at the forefront of states experimenting with Bitcoin reserves, positioning the state as a crypto-friendly jurisdiction.
While the proposed effective date for the bill is set for August 28, the legislation is still under discussion, and further hearings are expected. The second hearing for the bill has yet to be scheduled at the time of writing.
Similar Bitcoin Initiatives in Other US States
Missouri’s push for a Bitcoin reserve follows a similar initiative in Utah, where House Bill 230 is advancing. This bill would also give Utah’s state treasurer the authority to allocate public funds toward purchasing qualifying digital assets, including Bitcoin and stablecoins.
As of February 7, 17 out of 50 US states are in discussions about creating Bitcoin strategic reserves. Other states considering similar legislation include Arizona, Kentucky, New Hampshire, and South Dakota.
The growing interest in Bitcoin reserves could mark a pivotal moment in how US states approach cryptocurrency, signaling a shift toward crypto adoption in both governmental finance and investments.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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