Pressure for the adoption of cryptocurrencies is increasing as individual countries explore plans to use state funds to purchase Bitcoin. North Dakota It is the latest state to join the conversation after both chambers approved the recommendation.
Under House Concurrent Resolution No. 3001, introduced by six lawmakers, the state Legislative Assembly calls for… Investing in digital assets To stimulate economic growth and address inflation.
The decision encourages the Board of Investment and the State Treasury to diversify reserve funds to include digital assets such as Bitcoin.
Source: North Dakota State Legislature
Using cryptocurrencies to stimulate the economy and address inflation
On July 27, 2024, Wyoming State Senator Cynthia Lummis appeared at the Nashville Bitcoin Conference, holding papers and announcing… Bitcoin reserve bill. In a statement, Loomis boldly declared that this should serve as the country’s “Louisiana Purchase,” a policy that would make the United States competitive in industry and help address inflation.
Today, the call has a great deal of support from individual states, and North Dakota is the latest state to join the discussions.
According to the resolution’s sponsor, inflation is the main economic problem facing the state. They say that inflation erodes the purchasing power of state funds, affecting the state’s financial and economic security.
As such, it is important for North Dakota to invest in stored-value assets, such as Bitcoin, that can protect the state’s funds.
The state legislature requires the treasurer to diversify funds
According to the resolution’s sponsors, one way to address the impact of inflation is to diversify the country’s assets. They added that wise investment and use of state resources is crucial at this time of changing economic landscape. As such, they have directed the State Treasurer and the State Investment Board to use a portion of the funds to purchase Bitcoin and valuable items.
In addition, proponents of the resolution highlight the value of investment diversification as a basic principle for protecting state finances against economic threats, such as inflation.
While the decision does not mandate immediate action from the State Treasurer, it reflects the growing importance of cryptocurrencies in the context of economic growth.
Nationwide Bitcoin reserves are gaining momentum
North Dakota joins other states that are strongly considering adding bitcoin and other cryptocurrencies to their reserves. For example, Pennsylvania has already submitted its plan to invest in Bitcoin reserves, with the goal of using 10% of the initiative’s $7 billion emergency fund.
Florida also shared its plan to integrate Bitcoin into its financial system. The state’s chief financial officer, Jimmy Patronis, had already proposed creating this reserve. He suggested that a portion of Florida’s retirement funds could be used to purchase Bitcoin. Texas and Alabama have also expressed interest in cryptocurrency reserves.
Featured image from Getty Images, chart from TradingView