The Arizona state legislature has approved two bills that could lead to the establishment of the nation’s first state Bitcoin reserve, contingent upon Democratic Governor Katie Hobbs’s approval. These measures, primarily backed by Republicans and passed along party lines, would allow Arizona to invest up to 10% of its public funds in digital assets like Bitcoin. A 2023 audit reveals that the state manages over $30 billion in assets.
If signed into law, Arizona would pioneer the creation of a cryptocurrency reserve at the state level. Should Hobbs veto the bills, they will be nullified. A spokesperson from her office refrained from commenting on her decision-making process. Republican State Senator Wendy Rogers, the sponsor of one of the bills, advocates for the governor to sign the legislation, emphasizing the popularity of Bitcoin among younger demographics and independents.
The legislative move mirrors former President Donald Trump’s recent announcement of a “strategic crypto reserve,” although some crypto supporters expressed concern over Trump’s plans to include lesser-known, more volatile cryptocurrencies. Barrett Marson, a Republican consultant in Phoenix, noted that Arizona Republicans are influenced by Trump’s stance on cryptocurrency.
While uncertainty remains regarding whether Hobbs will endorse the bills, Marson believes she will weigh Bitcoin’s volatility in her decision. In contrast, Rogers remains optimistic about Bitcoin’s long-term value, arguing it serves as a hedge against inflation. She acknowledges that other cryptocurrencies need individual assessment but is confident in Bitcoin’s performance. Ultimately, the governor’s decision will significantly impact the future landscape of state involvement in cryptocurrency.
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