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Illinois may soon become the first U.S. state to hold Bitcoin in its fiscal reserves if lawmakers approve the Strategic Bitcoin Reserve proposal referred to Rules Committee by John Cabello.
On Jan. 29, the Bitcoin Strategic Bill was referred to the Rules Committee to establish regulations and fast-track its approval process. Illinois State Rep. John Cabello introduced the bill to set the groundwork for Bitcoin (BTC) to become the new strategic asset of Illinois.
Bitcoin Reserve bill for Illinois
Under the new legislation, the Illinois State Treasurer would manage the fund and be permitted to accept gifts, grants, and donations of BTC from Illinois residents and governmental entities to make deposits. Upon entering the custody of the State, BTC must be retained for a minimum of five years.
After a five-year holding period, the State Treasurer may transfer, sell, or convert BTC into another cryptocurrency. In addition to allowing the hiring of the cryptocurrency treasurer, the bill includes language on managing and securing the fund, reporting on fund status, and allowing Illinois residents to donate BTC to the fund voluntarily.
The legislation also allows the State Treasurer to adopt rules to administer this reserve. If passed, the Strategic Bitcoin Reserve Act would go into effect immediately, potentially making Illinois the first of any U.S. state to implement a formal strategy around a Bitcoin reserve.
Growing adoption for Bitcoin Reserves:
Cynthia Lummis, a longtime proponent of BTC in the U.S. Congress who has lobbied for a national Strategic Bitcoin Reserve, states that BTC could serve as a hedge against inflation and volatile economic conditions. On Jan. 30, she posted that she wants to hold public hearings on the Bitcoin Strategic Reserve. BTC-based reserves are growing popular among institutions.
On Jan. 29, the Governor of the Czech National Bank, Aleš Michl, revealed that Czechia may be the first in Western Europe to hold Bitcoin in its reserves. Michl suggested allocating as much as 5% of CNB’s €140 billion, which is $145.6 billion, reserves in BTC, a move that would represent the first step toward institutional crypto at the national level.
Additionally, Governor Dan Patrick of Texas also announced that he intends to establish a “Texas Bitcoin Reserve” as one of his top legislative priorities for the session that will take place in 2025.
As big banks and investment firms take on more BTC, some U.S. policymakers are looking for ways to align state and federal reserves with the trend.
This article first appeared at crypto.news
