One More American State Introduces Bitcoin Reserve Bill to Hedge Against Inflation

South Carolina has taken a bold step toward integrating digital assets into its financial strategy by introducing a bill to create a state-backed Bitcoin reserve.

One More American State Introduces Bitcoin Reserve Bill to Hedge Against Inflation

Another American state is considering investing part of its treasury funds in Bitcoin.

South Carolina lawmakers have proposed legislation that would create a state-backed Bitcoin reserve. The bill, titled the Strategic Digital Assets Reserve Act (H4256) and introduced by Representative Jordan Pace, aims to use Bitcoin as a hedge against inflation and economic instability.

The proposal, H4256, would authorize the South Carolina State Treasurer to invest up to 10% of state-held funds in Bitcoin, subject to a maximum limit of 1 million BTC. The funds for these investments would be drawn from existing reserves, specifically the General Fund and the Budget Stabilization Reserve Fund.

The bill also mandates transparency by requiring the public disclosure of wallet addresses linked to the Bitcoin reserve, enabling citizens to track transactions and verify holdings directly on the blockchain. Furthermore, the legislation imposes strict storage requirements, necessitating the use of cold wallets or certified custodians to safeguard the state’s Bitcoin assets.

Moreover, the bill permits South Carolina residents to make voluntary contributions in Bitcoin to the state government, fostering greater integration of digital assets into the state's financial landscape.

The bill’s introduction follows a recent move by the U.S. government to sell some of its seized Bitcoin, which sparked lively discussion among members of Congress.

The House Committee on Financial Services is currently examining the feasibility of establishing a framework for regulating stablecoins. This bill contributes to the ongoing conversation about digital assets in the American political landscape.