Three American states may soon create local bitcoin reserves. These initiatives differ from the federal proposal and demonstrate local cryptocurrency management characteristics.
Specs of Local Proposals vs. Federal Bill
The main difference between local proposals and the federal bill lies in their end goals. The federal bill is aimed at tackling the national debt and calls for purchasing one million bitcoins to be stored in the US Treasury. Texas plans to accumulate cryptocurrency through taxes and donations, while Ohio and Pennsylvania consider bitcoin a hedge against the devaluation of the USD.
The Cynthia Lummis Bill
The federal bill was introduced in July 2024 by Wyoming Senator Cynthia Lummis. The proposal is a strategy to address the national debt by creating a US Treasury-controlled decentralized network of bitcoin vaults. The government is to purchase one million bitcoins, equivalent to about 5% of the total supply.
Local Bills and Their Future
The Texas and Ohio bills don't include direct intentions to purchase a specified amount of bitcoin for debt coverage. In Texas, cryptocurrency could be received as taxes and donations, then converted to bitcoin. Ohio proposes setting up a bitcoin fund to invest money, seeing bitcoin as a protection against USD’s devaluation.
States are developing their approaches to bitcoin storage and use. The final adoption of the bills is uncertain, but they represent a move towards financial innovation.
