Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent proposals from the States of New Hampshire and North Dakota for Bitcoin Reserves.
New Hampshire and North Dakota Propose Bitcoin Reserves
Two more States has followed suit after Pennsylvania, Ohio, and Texas proposed a Bitcoin Reserve. Both New Hampshire and North Dakota are of the same thinking even though there has been no explicit mention of a Bitcoin reserve in either case. Their aim is to make state funds available to be invested in the asset.
It was Keith Ammon, Congressman of New Hampshire, who submitted the bill on the 9th of January which would allow the US state to invest in Bitcoin and precious metals such as gold, silver and platinum. This would mean the potential acquisition of cryptocurrencies that had an average market capitalization of more than USD 500 billion in the previous calendar year, although it would only apply to Bitcoin currently.
No more than 10% of state funding could be allocated and according to Keith Ammon, the aim of the bill is to ensure that New Hampshire is not left behind when it comes to Bitcoin. He noted that the state that is last to build Bitcoin reserves will lose. It’s urgent that states act sooner than later, and that takes some education on the part of state officials. New Hampshire would also become one of the first places to officially accept Bitcoin in their treasury.
The bill also raises security issues as it requires all digital assets held by the state to be stored by qualified custodians. These measures are to mitigate risks that arise because of price volatility as well as storage. It takes a cautious but forward looking approach to integrating cryptocurrencies into public finance.
North Dakota meanwhile has seen six congressmen and two senators submit a resolution to integrate "digital assets" and precious metals into the US state's investment strategy. The bill was introduced on the 7th of January and is known as HCR3001. Representatives Nathan Toman, Matthew Heilman, Jared Hendrix, Daniel Johnston, SuAnn Olson, and Todd Porter are the sponsors and it was seconded by Senators Jeff Barta and Bob Paulson. It will look for the State Treasurer and the State Investment Board to invest in digital assets and precious metals but to ensure it remains transparent it also requests that all parties involved are fully aware of what the legislature intends to do. HCR3001 does not require action but is a signal of major interest in digital assets as part of the state’s financial strategy.
These measures are to counteract the fact that "inflation erodes the purchasing power of money held in state funds and affects the state's financial stability and economic security". It is believed that backing Bitcoin in State funds will help to counteract these issues.
https://x.com/Dennis_Porter_/status/1877746381949116787
Have a great day.
Peace. CryptoGod-1.
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