- Missouri proposes a Bitcoin reserve fund to diversify investments and hedge against inflation.
- House Bill 1217 mandates government entities to accept Bitcoin for taxes, fines, and fees.
- Seventeen US states are exploring Bitcoin reserves, with Missouri and Utah leading the discussions.
Missouri Representative Ben Keathley has introduced House Bill 1217 to add Bitcoin to the state’s investment portfolio. The bill proposes creating a Bitcoin Strategic Reserve Fund managed by the state treasurer. If approved, Missouri will join other states considering cryptocurrency as part of their financial strategy.
Bitcoin as a Hedge Against Inflation
Missouri’s finances benefit from Bitcoin’s supporting role as an inflation shield against uncertain economic conditions. It allows the state to accept Bitcoin donations from residents and government agencies. These funds will contribute to the reserve and support state financial operations.
The bill also requires government entities to accept Bitcoin for taxes, fines, and fees. However, individuals paying with Bitcoin must cover transaction costs. This measure ensures a smooth transition for cryptocurrency use in state payments.
Missouri’s Long-Term Bitcoin Strategy
The bill proposes a long-term holding strategy for Bitcoin to maximize potential gains. The treasurer must store Bitcoin for at least five years before making any transactions. This strategy aims to reduce volatility risks while strengthening Missouri’s financial stability.
Additionally, the legislation gives the treasurer authority to invest state funds directly into Bitcoin. This step would position Missouri as one of the first US states to hold Bitcoin as an official asset. The bill’s supporters believe this move will diversify investments and enhance financial security.
Growing Bitcoin Adoption Among US States
The legislative body of Missouri pursues similar legislative measures after Utah advanced House Bill 230. Under Utah’s bill, the state treasurer can invest up to 5% of public funds into digital assets. The growing interest in Bitcoin among state governments as a financial asset drives this recent initiative.
17 US states are currently discussing Bitcoin reserve strategies. States such as Arizona, Kentucky, and Wyoming are exploring policies that integrate Bitcoin into public funds. Missouri’s decision could influence other states to follow a similar path.
The lawmakers await final approval for House Bill 1217 which will implement its measures on August 28. Lawmakers continue to review the bill while delaying the scheduling of its second hearing. Missouri’s decision on Bitcoin reserves could set a precedent for future state-level cryptocurrency investments.
