The push for crypto adoption is getting stronger as individual states explore plans to use state funds to buy Bitcoin. North Dakota is the latest state to join the conversation after both houses approved the recommendation.
Under House Concurrent Resolution No. 3001, introduced by six legislators, the state’s Legislative Assembly calls for an investment in digital assets to spur economic growth and address inflation.
The resolution encourages the investment board and the state treasure to diversify the reserve funds to include digital assets like Bitcoin.
Using Crypto To Spur The Economy And Address Inflation
On July 27th, 2024, Wyoming Senator Cynthia Lummis appeared at the Nashville Bitcoin Conference, holding papers and announcing the Bitcoin Reserve Bill. In a statement, Lummis boldly declared that this should serve as the country’s “Louisiana Purchase”, a policy that would make the US competitive in the industry and help address inflation.
Today, the call is getting a lot of support from individual states, with North Dakota as the latest to join the discussions.
According to the resolution’s sponsor, inflation is the primary economic problem facing the state. Inflation, they say, erodes the purchasing power of state funds, which affects the state’s financial and economic security.
As such, it’s crucial that the state of North Dakota invests in a store-of-value asset, like Bitcoin, which can protect the state’s funds.
State Legislature Asks Treasurer To Diversify Funds
According to the resolution’s sponsors, one way to address the impact of inflation is to diversify the state assets. They added that prudent investment and use of the state’s resources are crucial at this time of changing economic landscape. As such, they have directed the State Treasurer and State Investment Board to use part of the funds to buy Bitcoin and precious materials.
In addition, the resolution’s proponents highlight the value of investment diversification as a core principle for protecting the state’s finances against economic threats, such as inflation.
While the resolution doesn’t mandate immediate action from the State Treasurer, it reflects the growing importance of crypto in the context of economic growth.
State-Level Bitcoin Reserve Gaining Momentum
North Dakota joins other states that are strongly considering adding Bitcoin and other crypto to their reserves. For example, Pennsylvania has already forwarded its plan to invest in Bitcoin reserves, with an aim to use 10% of its $7 billion emergency fund in the initiative.
Florida also shared its plan to integrate Bitcoin into its financial system. The state’s chief financial officer, Jimmy Patronis, already suggested the creation of this reserve. He proposed that a portion of Florida’s retirement funds could be used to buy Bitcoin. Texas and Alabama have also expressed interest in a crypto reserve.
Featured image from Getty Images, chart from TradingView
