Bitcoin skyrocketed by $95,000! Arizona is the first to bet on cryptocurrency, is this move a win or a loss?
Imagine, in the safe of a state government in the U.S., there are not only dollars and gold but also Bitcoin shining! This is not a sci-fi 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 Bitcoin and other cryptocurrencies, making it the first state in the U.S. to explicitly require public fund allocation to cryptocurrencies. After this news broke, the price of Bitcoin instantly soared past $95,000, causing a frenzy in the market with over 110,000 people liquidated, and global attention is focused on this new battlefield of 'digital gold'.
1. The government takes the lead in buying Bitcoin, this operation is so cool!
1. A bold attempt at 10%
According to the bill, Arizona's State Treasurer and pension 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, it could theoretically allocate $1 billion to buy Bitcoin! This money can not only be held long-term but can also earn additional income by lending crypto assets, such as lending Bitcoin to institutions for interest. This is equivalent to the government becoming a 'crypto fund manager', playing a high-risk game with taxpayers' money.
2. A reserve cooler than gold?
The core of the bill is the establishment of a strategic digital asset reserve fund, with funding sources including seized assets and legislative appropriations. Unlike traditional gold reserves, Bitcoin's decentralization and fixed supply (21 million coins) are seen by supporters as a 'digital shield' against inflation. For example, when the dollar depreciates due to overproduction, Bitcoin's scarcity could allow the state treasury to 'sit tight'. Additionally, the bill allows state governments to store crypto assets in the federal strategic Bitcoin reserve, linking it with national-level policies.
3. The crucial vote of the governor
Currently, the bill has been submitted to Governor Katie Hobbs for signature. This Democratic governor previously threatened to veto all bills due to budget disputes, but the latest news indicates that the budget deadlock has been temporarily resolved. However, she has not yet made a clear statement about supporting the cryptocurrency reserve plan. If signed, Arizona will officially enter the 'government buying crypto' era; if vetoed, the bill may be revived through parliamentary reconsideration (requiring a two-thirds majority). The final result of this 'crypto gamble' is just a pen stroke away from the governor!
