Arizona Passes Bitcoin Reserve Bill, Awaiting Governor's Final Signature
On April 28, the Arizona legislature passed a Bitcoin reserve bill, making it the first of its kind in the United States! However, Governor Katie Hobbs is still considering whether to approve it, as the state budget has not been finalized. She previously stated that all new bills would be put on hold, so the fate of this Bitcoin bill remains uncertain.
Recently, Arizona's two chambers passed this bill with almost bipartisan support. The bill was proposed by Republican Senator Wendy Rogers and allows the state treasury to invest a portion of public funds in Bitcoin. During the voting process, participation was high, with no absences in both rounds of voting. Ultimately, the bill was passed in the House with 29 votes in favor and 25 against, and in the Senate with 31 votes in favor and 25 against. However, four senators did not vote.
Supporters of the bill believe that Bitcoin reserves can help Arizona diversify its assets, hedge against inflation, and position the state at the forefront of digital financial innovation. They argue that Bitcoin's fixed supply and decentralized nature offer advantages over traditional fiat currencies, especially amid current concerns about national debt and currency devaluation. However, some worry that the volatility of Bitcoin prices could pose risks to state funds. Others question whether it is appropriate to invest public funds in such speculative assets, given the federal government's insufficient regulation of cryptocurrencies.
The bill also states that Bitcoin investments will be counted as part of the state investment portfolio's digital currency holdings and will be subject to oversight under Arizona's existing public fund management regulations. This indicates that the state government maintains an optimistic yet cautious attitude toward Bitcoin investments.
In the context of discussing the role of digital assets in public finance, although other states have explored cryptocurrency-related measures, Arizona is the first to pass a bill establishing a Bitcoin reserve.
Now, if Governor Hobbs signs this bill, Arizona will become the first state in the U.S. to officially incorporate Bitcoin into its financial strategy.
What do you think? Do you believe Governor Hobbs will approve this Bitcoin reserve bill?
