Will South Carolina become the first U.S. state to hold one million Bitcoin?
Legislators in South Carolina have introduced a new bill proposing the establishment of a strategic reserve for digital assets, allowing the state to own up to one million Bitcoin as a hedge against inflation and financial market volatility. The legislation, introduced on March 27, aims to empower the state treasurer to hold Bitcoin and other digital assets within government investments to enhance financial stability.
According to the text of the bill, ongoing inflation has eroded the purchasing power of pension funds and managed government assets, prompting the state to seek alternative investment strategies to preserve the value of its funds. Bitcoin is viewed as a digital asset capable of providing protection against sharp economic changes, especially with its increasing global adoption as a safe haven akin to digital gold.
The bill stipulates that the digital reserve will be stored in cold wallets or through certified custodians to ensure the highest levels of security. It also sets a maximum ownership limit for digital assets at 10% of the total funds managed by the state, while allowing its residents to voluntarily donate digital assets to support the reserve.