Ohio Could Become First US State to Hold Its Own Bitcoin Reserve
Date: 2024-12-18 Author: Oliver Abernathy Categories: IN WORLD
Derek Merrin, who leads the Republican Party in the state House of Representatives, announced the introduction of House Bill 703 on the social network X. The document proposes to empower the state treasurer to invest in Bitcoin (BTC) in order to create a reserve in the cryptocurrency. According to Merrin, including Bitcoin in the state's investment portfolio will protect public funds from the depreciation of the US dollar, ensuring that their real value is preserved for future generations.
If the bill is passed, Ohio will become one of the first states to officially accept cryptocurrency into state financial mechanisms. This decision could become a catalyst for wider corporate use of digital assets, strengthening Bitcoin's position in the global economy. Senator Cynthia Lummis, a prominent cryptocurrency advocate, argues that Bitcoin, which is already accepted as a means of payment by large corporations and even government agencies, could strengthen the state’s financial stability. Matthew Siegel, who heads up digital asset research at VanEck, believes that such a move would highlight the legitimacy of cryptocurrencies on a global level.
According to Statista, Ohio’s debt by 2022 was $72.16 billion, much of which is in bonds issued to finance infrastructure, education, and other government projects. Including Bitcoin in treasury reserves could help improve Ohio’s long-term financial stability. This, in turn, could reduce the need to increase taxes or cut social programs, giving the state more room to meet its financial obligations to residents.
Derek Merrin’s bill highlights the growing role of cryptocurrencies in the economy and could open up new horizons for state financial management in the digital age.
