Arizona has taken a significant step towards becoming the first US state to establish a Bitcoin reserve. The state's legislature has passed two bills, Senate Bill 1025 and Senate Bill 1373, which would allow the state to invest up to 10% of its $31.5 billion in public funds into digital assets, including Bitcoin.
*Key Details:*
- *Investment Amount*: Up to $3.14 billion, approximately 10% of Arizona's public funds, would be allocated to digital assets.
- *Bitcoin Holdings*: If fully utilized, Arizona could acquire around 31,000 BTC, making it one of the largest Bitcoin holders in the US.
- *Digital Assets Strategic Reserve Fund*: A new fund would be established to manage seized or purchased crypto assets, prioritizing transparency and risk management protocols.
*What's Next?*
The bills now await Governor Katie Hobbs' signature to become law. While she hasn't publicly indicated her stance, bipartisan support suggests a strong likelihood of approval.
*Potential Impact:*
Arizona's move could legitimize Bitcoin as a mainstream financial asset, encouraging other states to rethink their strategies. Industry experts predict that if multiple state reserve bills pass nationwide, they could drive over $23 billion in new demand for Bitcoin.
