Massachusetts may soon be joining the ranks of states like Texas, Hong Kong, and Germany in considering the establishment of a strategic Bitcoin reserve. The latest move comes from Republican Senator Peter Durant of Worcester County, who has introduced a bill for this purpose in the state legislature.
The bill proposes the creation of a separate fund, known as the Commonwealth Bitcoin Strategic Reserve, which will be managed by the state treasurer. The funds allocated for purchasing Bitcoin and other cryptocurrencies will be unspent, unencumbered, or uncommitted. However, the total amount allocated for this purpose cannot exceed 10% of the funds deposited in the Commonwealth Stabilization Fund.
Based on the current size of the stabilization fund, which stands at approximately $9 billion, the state could potentially allocate around $900 million for acquiring Bitcoin and other crypto assets. The bill also authorizes the state Treasury to loan the Bitcoin or other crypto assets held in the reserve, with the aim of generating additional returns without increasing the state's financial risk.
This move by Massachusetts marks a significant shift in the state's approach to digital assets, as Massachusetts is typically considered a deep blue state with a strong Democratic stronghold. It will be interesting to see how the bill progresses through the state legislature and whether it ultimately leads to the establishment of a strategic Bitcoin reserve in Massachusetts.
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