Pennsylvania has proposed a bill for creating a Bitcoin Strategic Reserve to diversify the state treasury.
Why Bitcoin?
The bill emphasizes Bitcoin's role as a 'financial hedge' against inflation. Rep. Mike Cabell argues that Bitcoin provides a protective layer from economic instability, particularly as inflation affects traditional financial assets.
Support for the Bill
Support for the proposal also comes at the federal level. Senator Cynthia Lummis from Wyoming previously introduced similar laws to encourage government entities to hold Bitcoin. Lummis believes that approval may be possible within the first 100 days of the new president's term.
Impact on Bitcoin Market
The introduction of Pennsylvania’s bill aligns with a surge in Bitcoin's price following Trump's election victory. Optimism about Trump's crypto-friendly policies drove Bitcoin's price to a record high of $93,000 per token, increasing its market cap to $1.72 trillion.
If the bill passes, Pennsylvania would become the first U.S. state to directly acquire Bitcoin as part of its treasury, continuing the global trend of recognizing cryptocurrencies as an asset.
