#亚利桑那比特币储备 Bitcoin soared to $95,000! Arizona takes the lead in betting on cryptocurrency, is this move a win or a loss?
Imagine a state government’s safe in the U.S. that no longer holds just dollars and gold, but also has Bitcoin shining brightly! This is not a science fiction movie, but a reality happening in Arizona. On April 28, the state’s House of Representatives passed two historic bills (SB1025 and SB1373) with votes of 31:25 and 37:19, allowing the state government to invest up to 10% of public funds in cryptocurrencies like Bitcoin, making it the first state in the U.S. to explicitly require public funds to be allocated to cryptocurrency. After this news broke, Bitcoin's price immediately surged past $95,000, causing a market frenzy with over 110,000 liquidations, and the world’s attention is focused on this new battlefield of “digital gold.”
One, the government leads the way to buy Bitcoin, this operation is too cool!
1. A bold attempt of 10%
According to the bill, Arizona’s treasurer and retirement funds can invest up to 10% of available funds in Bitcoin and other cryptocurrencies. For example, if the state treasury has $10 billion available for investment, theoretically, it could allocate $1 billion to buy Bitcoin! This money can not only be held long-term but also generate additional income by lending crypto assets, such as lending Bitcoin to institutions for interest. This is akin to the government acting as a “crypto fund manager,” playing a high-risk game of digital assets with taxpayer money.
2. A reserve trendier than gold?
The core of the bill is to establish a strategic digital asset reserve fund, funded by seized assets and legislative appropriations. Unlike traditional gold reserves, Bitcoin’s decentralization and fixed supply (21 million coins) are viewed by supporters as a “digital shield” against inflation. For instance, when the dollar depreciates due to over-issuance, Bitcoin’s scarcity may allow the state treasury to “sit tight.” Additionally, the bill allows the state government to store crypto assets in the federal strategic Bitcoin reserve, linking it with national-level policies.
3. The governor's crucial vote
Currently, the bill has been submitted to Governor Katie Hobbs for signing. This Democratic governor had previously threatened to veto all bills due to budget disputes, but recent news indicates that the budget stalemate has been temporarily resolved. However, she has not clearly stated whether she supports the cryptocurrency reserve plan. If signed, Arizona will officially enter the “government buys coins” era; if vetoed, the bill may be revived through legislative reconsideration (requiring a two-thirds majority). The final outcome of this “crypto gamble” hinges on the governor's pen!
Two, the federal and state “crypto duet”
1. Trump’s assistance
Earlier this year in March, President Trump signed an executive order proposing the establishment of a strategic Bitcoin reserve and digital asset repository, and requiring the treasury secretary to assess feasibility. Although the federal level has not yet directly purchased Bitcoin, Arizona's bill can be seen as a “local response” to Trump’s policy. For instance, the state government may design reserve management mechanisms based on the federal framework and even deposit some Bitcoin into the federal reserve, forming a “top-down interactive” network of crypto assets.
2. New tactics for dollar hegemony
The deeper intention behind the U.S. push for Bitcoin reserves may be to strengthen the dollar's position through a cycle of “dollar-stablecoin-cryptocurrency.” For instance, 80% of stablecoin reserves (like USDT) are directed towards U.S. Treasury bonds, forming a dollar repatriation mechanism. If Arizona implements the bill, it may further consolidate this cycle while attracting crypto companies like Coinbase, boosting the local economy. This maneuver can be described as “using Bitcoin's shell to hold the dollar's core.”
3. The game of regulation and risk
Although federal policies have shifted to support, the (Federal Reserve Act) still limits the Federal Reserve from directly holding Bitcoin. Arizona’s reserve plan may face federal compliance reviews, such as whether the sources of funds comply with anti-money laundering regulations and whether the storage of crypto assets is secure. Furthermore, Bitcoin prices are highly volatile (e.g., a 15% drop in a single day in February 2025), if the state government invests $1 billion, a price drop from $100,000 to $70,000 would directly incur a loss of $300 million, which poses a significant challenge to fiscal stability.
Three, what does this mean for ordinary people?
1. Will wallets swell or shrink?
- Economic dividends: The legislation may attract crypto businesses to establish headquarters or data centers in Arizona, boosting employment and tax revenue. For example, Texas has attracted many miners due to low electricity prices, and Arizona may replicate this model.
- Risk sharing: If Bitcoin crashes, the state’s fiscal losses may indirectly affect public services (such as education and healthcare). Opponents criticize this as “high-risk speculation” using taxpayer money, with a Montana lawmaker stating, “Cryptocurrency is not suitable as a public reserve asset.”
2. Technological challenges and opportunities
The secure storage (such as cold wallet management) and auditing mechanisms for crypto assets require professional technical support. The state government may need to collaborate with third-party organizations, such as using multi-signature wallets and offline storage (cold wallets) to prevent hacking. Additionally, the bill requires regular disclosure of the value of reserve assets and transaction records to maintain public trust.
3. Global demonstration effect
If Arizona’s bill takes effect, it may trigger other states to follow suit, potentially influencing policies in developing countries. For example, El Salvador once adopted Bitcoin as legal tender but ultimately abandoned it due to technical and economic issues. Arizona’s practice will provide a trial sample of “state-level crypto reserves” for the world; success may encourage more countries to embrace digital assets, while failure may serve as a cautionary tale.
Four, the governor's choice: legend or joke?
1. The struggle between politics and public opinion
Governor Hobbs’ stance is crucial. As a Democrat, she is more inclined to prioritize addressing social issues such as healthcare and education. Previously, she threatened to veto all bills unless funding for disability healthcare was approved. Although the budget dispute has been temporarily resolved, she has not clearly supported the cryptocurrency reserve. If she signs the bill, it may win her support from tech companies and young voters; if she vetoes it, she may be criticized for “stifling innovation.”
2. The shadow war in other states
Arizona is not fighting alone. Texas has passed a similar bill (SB21) allowing investments in cryptocurrencies with a market cap of over $500 billion (currently limited to Bitcoin); Pennsylvania has proposed the Bitcoin Rights Bill to protect residents' rights to hold crypto assets. However, Arizona's 10% investment ratio is the highest in the U.S., making it a “most radical” crypto policy.
3. The market's frenzied reaction
After the bill’s passage, Bitcoin's price soared to $95,000, setting a new historical high, but over 110,000 liquidations occurred within 24 hours, amounting to $275 million. This reflects the market's divergence on cryptocurrency: supporters believe government involvement will drive prices up, while opponents worry about policy risks and price bubbles.
Five, future outlook: The “interstate war” of cryptocurrency
1. Key moments
- May-June: The bill is submitted to the Senate for deliberation, with Republican support being key to its passage.
- May 6: The federal treasury secretary must submit an assessment report required by Trump’s executive order, which may provide guidance for state-level policies.
- By the end of 2025: If the bill takes effect, Arizona may initiate its first Bitcoin purchases, becoming a global focal point.
2. Long-term challenges
- Regulatory framework: Specific rules for crypto asset custody, trading, and auditing need to be established to avoid legal loopholes.
- Risk hedging: Establish stop-loss lines or diversify investments in other cryptocurrencies (such as Ethereum) to reduce the risk of a single asset.
- Public trust: Regularly disclose reserve data to prevent corruption or conflicts of interest.
3. How should we respond?
For ordinary investors, Arizona's bill sends a signal of “legalization” for cryptocurrency, but one must be wary of market volatility. If you wish to participate, it is recommended to:
- Small-scale trials: Do not invest too much money; cryptocurrency is suitable as a small part of asset allocation.
- Monitor policies: Changes in state and federal policies may affect market direction, such as the SEC's new chair committing to clarify regulatory frameworks.
- Learn the technology: Understand cold wallet management and blockchain basics to protect asset security.
Conclusion: The “interstate revolution” of cryptocurrency
The Arizona bill is a milestone in local governments' exploration of cryptocurrency reserves in the U.S., reflecting the mainstreaming trend of digital assets. Despite facing technological, regulatory, and market risks, if implemented, the bill could reshape state-level fiscal management models and provide practical reference for federal policies. Regardless of the outcome, this “crypto gamble” will be recorded in history, becoming an important footnote in the era of digital currency. Let us wait and see if Governor Hobbs will write a “legend” or a “joke” in history!
Do you think Arizona's cryptocurrency reserve plan is a wise move or a gamble? Leave your thoughts in the comments section and let's discuss!
