A State in the United States Takes a Step Towards Creating a Bitcoin Strategic Reserve!

The state of Ohio, USA, took a bold step towards integrating Bitcoin into its financial strategy by introducing a new bill that will enable the creation of a “Strategic Bitcoin Reserve”. The bill, supported by six co-sponsors, is designed to protect the state's funds against inflation and ensure the long-term stability of its financial assets.

The basic details of the design are as follows:

• Allocation of Funds: The proposed legislation allows Ohio's general fund, budget stabilization fund, and rewards assurance fund to allocate up to 10% to Bitcoin.
• Custody Solutions: The design outlines the main requirements for secure custody to ensure the security of the reserve. Ohio will either use self-custody or a qualified custodian to manage their digital assets.
• Technology-Neutral Approach: In order to minimize political conflicts and ensure fast movement, the design adopts a technology-neutral stance by using the term "digital asset" instead of separating Bitcoin. However, its strict requirements ensure that Bitcoin is currently the only suitable cryptocurrency.
• Eligibility Criteria: To qualify for inclusion in the reserve, a digital asset must have a market value of at least $750 billion based on a 12-month average.

The proposal received significant attention with strong support from the state administration and six equal sponsors, increasing the chance of enactment.