The push for cryptocurrency adoption is growing stronger as individual states explore plans to use state funds to purchase bitcoin. <a target="_blank" href="https://www.hpbl.co.in/news/north-dakota-eyes-crypto-for-state-reserves-bitcoin-emerges-as-a-prime-candidate-2/” target=”_blank” rel=”noopener nofollow”>North Dakota It is the latest state to join the conversation after both chambers approved the recommendation.
According to House Concurrent Resolution No. 3001, introduced by six legislators, the state Legislature requires a investment in digital assets to stimulate economic growth and address inflation.
The resolution encourages the investment board and state treasury to diversify reserve funds to include digital assets such as <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”noopener nofollow”>bitcoin.
Source: North Dakota State Legislature
Using Cryptocurrencies to Stimulate the Economy and Tackle Inflation
On July 27, 2024, Wyoming Senator Cynthia Lummis appeared at the Nashville bitcoin Conference, holding documents and announcing the <a target="_blank" href="https://www.forbes.com/sites/digital-assets/2025/01/03/nations-states-turn-to-bitcoin-as-a-strategic-reserve-asset/” target=”_blank” rel=”noopener nofollow”>bitcoin Reserve Bill. In a statement, Lummis boldly declared that this should serve as the country's “Louisiana Purchase,” a policy that would make America competitive in manufacturing and help address inflation.
Today, the call is receiving a lot of support from individual states, with North Dakota being the latest to join the discussions.
According to the resolution's sponsor, inflation is the main economic problem facing the state. Inflation, they say, erodes the purchasing power of state funds, affecting the state's financial and economic security.
As such, it is crucial that the state of North Dakota invest in a store of value asset, such as bitcoin, that can protect the state's funds.
State Legislature Asks Treasurer to Diversify Funds
According to the resolution's sponsors, one way to address the impact of inflation is to diversify state assets. They added that prudent investment and use of State resources are crucial at this time of changing economic landscape. As such, they have directed the State Treasurer and the State Investment Board to use part of the funds to purchase bitcoin and precious materials.
Additionally, proponents of the resolution highlight the value of investment diversification as a fundamental principle to protect the state's finances against economic threats, such as inflation.
While the resolution does not call for immediate action by the State Treasurer, it reflects the growing importance of cryptocurrencies in the context of economic growth.
State-level bitcoin reserve gaining momentum
North Dakota joins other states that are seriously considering adding bitcoin and other cryptocurrencies to their reserves. For example, Pennsylvania has already unveiled its plan to invest in bitcoin reserves, aiming to use 10% of its $7 billion emergency fund on the initiative.
Florida also shared its plan to integrate bitcoin into its financial system. The state's chief financial officer, Jimmy Patronis, has already suggested the creation of this reserve. He proposed that a portion of Florida's retirement funds could be used to purchase bitcoin. Texas and Alabama have also expressed interest in a crypto reserve.
Featured image from Getty Images, chart from TradingView
