Pennsylvania lawmaker introduces bill for ‘strategic Bitcoin reserve’

As a seasoned analyst with over two decades of experience in the financial industry, I find the recent move by Pennsylvania State Representative Mike Cabell to propose legislation allowing for Bitcoin investment by the state treasury intriguing. Given my extensive background, I’ve witnessed firsthand the evolution of digital assets and their potential impact on traditional finance.

Pennsylvania State Representative Mike Cabell has proposed a bill within the state’s House of Representatives that, if passed, would allow the state’s treasury to invest up to 10% of its funds in Bitcoin.

In a memo dated November 12th, Representative Cabell, a Republican, stated that he had introduced a bill as a means to combat inflation. He suggested that using Bitcoin (BTC) could provide stability during unpredictable economic periods, acting as a safeguard. If passed, this legislation would grant Pennsylvania’s Treasurer the authority to invest up to 10% of the State General Fund, the Rainy Day Fund, and the State Investment Fund in Bitcoin.

Lawmaker Cabell pointed out that companies such as BlackRock and Fidelity are using Bitcoin (BTC) as a means to safeguard their investment portfolios against economic instability. It was reported that he presented this bill in the Pennsylvania House on November 13th.

A Pennsylvania representative’s proposed Bitcoin Reserve bill seems to draw inspiration from a structure suggested by the Satoshi Action Fund, an organization that champions Bitcoin. Whether it will gather enough support for passage remains uncertain.

By November, I found myself with over $9.7 billion in my General Fund, along with approximately $7 billion tucked away in my Rainy Day Fund as the Pennsylvania Treasury reported.

This is a developing story, and further information will be added as it becomes available.

2024-11-14 20:24

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