The push for crypto adoption is building as individual states consider using public funds to purchase Bitcoin. North Dakota is the latest state to join the conversation after both chambers approved the recommendation.
As part of House Concurrent Resolution No. 3001, introduced by six lawmakers, the state Legislature calls for investment in digital assets to spur economic growth and combat inflation.
The resolution encourages the investment board and state Treasury to diversify their reserve funds to include digital assets like Bitcoin.
Source: North Dakota State Legislature
Using Crypto to Boost the Economy and Fight Inflation
On July 27, 2024, Wyoming Senator Cynthia Lummis appeared at the Bitcoin Conference in Nashville, holding documents and announcing the Bitcoin Reserve Bill. In a statement, Lummis boldly declared that this should serve as the nation’s “Louisiana Purchase,” a policy that would make the United States competitive in manufacturing and help combat inflation.
Today, the call is receiving great support from individual states, with North Dakota the latest to join the discussions.
According to the sponsor of the resolution, inflation is the main economic problem facing the state. Inflation, they say, erodes the purchasing power of public funds, which affects the financial and economic security of the state.
As such, it is crucial that the state of North Dakota invests in a store of value asset, like Bitcoin, that can protect state funds.
State Legislature asks treasurer to diversify funds
According to the sponsors of the resolution, one way to deal with the impact of inflation is to diversify state assets. They added that prudent investment and careful use of state resources are crucial during this time of changing economic landscape. As such, they directed the State Treasurer and the State Investment Board to use a portion of the funds to purchase Bitcoin and precious materials.
Additionally, supporters of the resolution emphasize the value of investment diversification as a fundamental principle for protecting state finances from economic threats, such as inflation.
While the resolution does not require immediate action by the state treasurer, it reflects the growing importance of crypto in the context of economic growth.
State-level Bitcoin reserve gaining momentum
North Dakota joins other states that are strongly considering adding Bitcoin and other cryptocurrencies to their reserves. For example, Pennsylvania has already outlined plans to invest in Bitcoin reserves, aiming to use 10% of its $7 billion emergency fund in the initiative.
Florida also shared its plans to integrate Bitcoin into its financial system. The state’s financial director, Jimmy Patronis, had already suggested the creation of this reserve. He proposed that a portion of Florida’s retirement funds could be used to purchase Bitcoin. Texas and Alabama have also expressed interest in a crypto reserve.
Featured image from Getty Images, chart from TradingView
