Ohio Joins Growing Trend of States Considering Bitcoin Reserves

Derek Merrin, an Ohio state representative, on Dec. 17 introduced House Bill 703 to establish a Bitcoin (BTC) reserve for the state.

Merrin shared the announcement in a post on X, explaining that the legislation aims to create a framework for the state government to leverage Bitcoin. In fiscal year 2022, Ohio was $72 billion in debt, ranking as the 12th highest state debt in the US, according to Statista.

By incorporating Bitcoin into the state’s investment portfolio, the proposed legislation seeks to hedge against inflation and economic instability. The move could also offer a way to preserve the value of public funds, aligning with broader trends of digital asset adoption at institutional levels.

“The US dollar is being rapidly devalued and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation,” Merrin said. “Ohio must embrace technology and protect tax dollars from eroding.”

Merrin explained that the bill, introduced just before the end of Ohio’s 135th General Assembly, is expected to serve as a framework for future discussions. He noted that since the current session adjourns on Dec. 31, the bill will need to be reintroduced in the 136th General Assembly, which begins on Jan. 6, 2025.

“Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money — it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin and strengthen our state finances,” he said.

A Growing Trend

Ohio’s plans for a Bitcoin reserve come in the wake of similar proposals from Texas and Florida. Texas, which has the second-largest economy in the U.S., is considering a reserve funded by Bitcoin donations, with a five-year holding period. Florida proposed leveraging its $1.865 trillion pension fund to invest in Bitcoin.

Alabama State Auditor Andrew Sorrell also proposed establishing a strategic BTC reserve in the state last week, emphasizing that it would diversify Alabama's financial portfolio and attract crypto-focused businesses to the region.

“Crypto is no longer a question of if — it’s here, and it’s reshaping financial markets worldwide. States that act now will be in a prime position to benefit,” Sorrell told 1819 news on Dec. 09.

“Supporting Bitcoin and blockchain initiatives such as an SBR bill generates employment opportunities in these emerging tech sectors

Lee Bratcher, the President at Texas Blockchain Council (TBC) who also helped to create Texas’ BTC reserve proposal, said in an interview that supporting Bitcoin anf blockchain initiatives “generates employment opportunities in these emerging tech sectors.”

“The initiative to pass a Strategic Bitcoin Reserve sends a strong message to technology companies and investors that fostering innovation is important to states such as Ohio and Texas, making the tech sectors flock to these states,” said Bratcher said in an interview.