Arizona's legislative body is advancing towards the establishment of bitcoin reserves by passing two bills, potentially making it the first U.S. state with crypto reserves.
Two Paths to a Crypto Reserve
On April 28, 31 representatives supported bill SB1025, proposing a 'strategic reserve' in bitcoin. Bill SB1373, aiming for a broader digital assets reserve, passed with 37 votes. These approvals mark a historic step for state-level crypto adoption in the U.S.
Growing Interest in Crypto Reserves
Representative Jeff Weninger, who backed SB1025, noted that Arizona is not alone in exploring this option: 'Probably 15 other states are considering the same legislation nationwide.' The state treasurer may invest up to 10% of reserves, likely starting with bitcoin. This provision provides flexibility, allowing the state to prepare for a future where crypto plays a larger role in finance.
Initiatives in Other Countries
Brazil's largest bank, Itaú Unibanco, has announced a $210 million investment in Oranje, a company dedicated to acquiring bitcoin as a strategic reserve. Oranje aims to be the first publicly traded company in Latin America focusing exclusively on bitcoin, with plans to achieve a 45% return on its bitcoin holdings in the first year, contingent on successful execution of its business plan.
The bills passed in Arizona reflect a growing interest in crypto reserves both in the U.S. and abroad, signaling a trend towards diversifying financial risks using digital assets.
