Arizona Advances Legislation to Create Strategic Bitcoin Reserve
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The Arizona State Senate Finance Committee has greenlit a bill to allow the state to create a strategic Bitcoin reserve (SBR), allowing it to diversify its financial portfolio.
The bill (SB1025), co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, was approved by the Arizona Senate Finance Committee on Jan. 27 with a five to two vote, according to the state’s official website. It will now proceed to a full Senate floor vote for further consideration.
If enacted, Arizona would establish an SBR, making it the first U.S. state to adopt this approach to cryptocurrency. This move marks a significant step toward integrating digital assets into state-level financial strategies and underscores the growing trend of using Bitcoin as a hedge against financial upheaval.
Arizona’s SBR Proposal
The bill outlines that it would allow the State Treasurer, the Arizona State Retirement System, and the Public Safety Personnel Retirement System to invest up to 10% of the public funds under their management in virtual currency holdings.
Arizona is one of more than a dozen states that have introduced bills proposing the creation of an SBR to invest in digital assets, including Texas, Ohio, Oklahoma and Pennsylvania. Experts suggest that by expanding Bitcoin’s role, states and governments could tap into the financial innovation and potential stability that digital assets offer.
Alan Orwick, co-founder and CEO of Quai Network, has previously told The Defiant that, as global economic instability and inflationary pressures increase, adopting Bitcoin in reserves could provide a solution. With a fixed supply of 21 million coins, Bitcoin offers a natural hedge against inflation, making it a crucial safeguard as fiat currencies continue to face devaluation.
“Unlike traditional reserve assets, Bitcoin’s digital nature enables unparalleled portability, divisibility, and resistance to censorship, making it a modern and adaptable tool for economic resilience,” Orwick said.
Huge Win
Dennis Porter, CEO and Founder of Satoshi Action Fund (SAF), a non-profit advocating for Bitcoin reserves, commented on Arizona’s bill approval in a recent post on X, where he praised Sen. Rogers and Rep. Weninger for their “great work.”
SAF has been actively involved in assisting lawmakers with drafting proposals and bills. In a recent post, the organization expressed its excitement, stating, “We are thrilled with the significant progress made over the past three months in introducing key legislation, marking an important milestone in our mission.”
Earlier this year, SAF revealed that as many as 20 Strategic Bitcoin Reserve (SBR) bills are set to be introduced at the state level in the U.S.
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