#ArizonaBTCReserve refers to a proposal or idea discussed mainly in the context of state politics in Arizona, United States, to create a state reserve of Bitcoin (BTC).

Context

Legislative Proposal: In 2023 and 2024, lawmakers in Arizona proposed bills for the state to invest part of its reserves or surplus in Bitcoin.

Objective: The initiative seeks to diversify the state's financial reserves, protecting public assets against dollar inflation and potentially benefiting from Bitcoin appreciation.

Motivations: Arizona has a history of interest in financial innovation, including proposals to recognize Bitcoin as legal tender (unsuccessful so far).

How would it work?

The state would create a kind of “state treasury in Bitcoin,” under public management.

The rules, exposure limits, and custody arrangements would be established in the legislation or regulations.

Why has the topic gained prominence?

Arizona would be the first American state (if approved) to adopt Bitcoin as a formal part of its financial reserves.

The topic divides opinions: supporters believe in the appreciation of BTC and protection against inflation, while critics warn about the volatility and risks of the asset.