The Pennsylvania House of Representatives proposed a bill to invest up to 10% of the state fund in Bitcoin. The initiative aims to diversify investments and hedge against inflation.
Goals of the Reserve Bill
The bill, sponsored by Republican Representative Mike Cabell, aims to protect Pennsylvania from inflation through strategic investment in digital assets. It could make Pennsylvania the first U.S. state to acquire Bitcoin as part of its treasury.
State and Nationwide Support
Support for this bill is growing both in Pennsylvania and at the federal level. For instance, Senator Cynthia Lummis from Wyoming has introduced a similar federal bill. Such examples highlight the increasing popularity of cryptocurrencies among legislators.
Impact on Bitcoin Market
The introduction of this bill coincided with a rise in Bitcoin's price following Donald Trump's recent election victory. Bitcoin has become the seventh-largest asset worldwide due to this surge.
If Pennsylvania passes the Bitcoin Strategic Reserve Act, the state will become a leader in financial innovation, underscoring Bitcoin's potential as a tool for diversification and inflation hedging.
