The Arizona state legislature has approved a groundbreaking measure that could allow the state to invest billions of dollars in Bitcoin (BTC) and other digital currencies. This legislation, known as S.B. 1025, allows state public funds to allocate up to 10% of their managed assets in digital assets, positioning Arizona at the forefront of integrating digital assets into public finance.
First state to invest in Bitcoin
According to Bloomberg, the recently passed bill defines qualified investments as any "digital representation of value" that is not based on the US dollar or foreign currencies. This broad definition is designed to encompass a variety of digital assets, including Bitcoin and non-fungible tokens (NFTs).
In addition, the legislation creates a strategic reserve fund for digital assets, dedicated to holding seized digital currency assets and future credits. The fund will be required to review blockchain and standard risk controls, ensuring transparency and security in managing these investments.