After the surge in Bitcoin prices in the last few years and the increase in institutional investors, many regulatory bodies and governments are also adopting a flexible attitude towards cryptocurrency and are preparing to create a crypto reserve. Now, a big decision has been taken regarding cryptocurrency in the US state of Arizona. Arizona’s House of Representatives has passed two important bills related to Cryptocurrency, which will allow the state to create its reserve through Bitcoin or any other cryptocurrency. What is Bitcoin Reserve, and what are its major benefits? Read about this in detail here.
Arizona is the first US state to
After passing two bills in the House of Representatives, Arizona has become the first state in the US that legalize the reserves of digital assets.
- The SB1025 bill was supported by 31 members, while 25 members opposed it.
- On the other hand, 37 votes were cast in favor of the SB1373 bill, and 19 members voted against it.
- After the bill was passed, State Representative Jeff Weninger said that these bills were brought in view of the growing influence of Bitcoin in the future. This is a kind of pre-planned preparation.
A look at both bills
- Senate Bill 1025 (SB1025): This bill gives the state treasurer the authority to invest up to 10 percent of the state’s bitcoin reserves. The bill seeks to adopt bitcoin as a strategic asset for the state and is proposed to take into account the growing role of bitcoin in the future.
- Senate Bill 1373 (SB1373): This bill proposes to create a digital asset reserve in the state of Arizona and plans to include other cryptocurrencies along with Bitcoin. The bill also aims to embrace financial diversity and technological advancements.
Is America preparing for a Bitcoin reserve?
These days, there are strong discussions about creating a cryptocurrency reserve at the federal level in the US. In recent times, the US regulatory bodies have adopted a very flexible approach regarding many rules and regulations related to cryptocurrency. The US President is an open supporter of this. In March itself, Donald Trump signed an executive order, in which a proposal was made to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile”.
On the other hand, Senator Cynthia Lummis from the US state of Wyoming has also put forward a proposal in Congress, under which the US government has been asked to hold more than 1 million bitcoins. In such a situation, this step by the state of Arizona can prove to be a milestone. Arizona Governor Katie Hobbs can soon sign both these bills, after which they will take the form of law.
This step of Arizona is a visionary effort towards the digital financial future, although steps will have to be taken with extreme caution at the initial stage. While many countries and states in the world are skeptical about cryptocurrency, Arizona has accepted it with an open heart. If this experiment of Arizona state is successful, then in the near future other states of America can also move in this direction.