Pennsylvania: Leader in Adopting Bitcoin Reserve Bill

On November 14, 2024, the Pennsylvania House of Representatives introduced the Pennsylvania Bitcoin Strategic Reserve Act, a bill allowing the state treasury to

Pennsylvania House Introduces Bill to Allocate State Treasury in BitcoinThe Pennsylvania House of Representatives introduced the Pennsylvania Bitcoin Strategic Reserve Act on Monday, a bill that would direct the state treasury to allocate Bitcoin (BTC), as reported by Wu Blockchain. The legislation aims to combat inflation and diversify investment beyond traditional assets like bonds and cash reserves.

The Pennsylvania Bitcoin Strategic Reserve Act seeks to counter inflation by permitting the state treasury to invest up to 10% of its $7 billion in BTC. This strategy is based on the belief that BTC can serve as a hedge against inflation due to its limited supply and decentralized nature, contrasting with fiat currencies that can be subject to excessive printing and devaluation.

By integrating BTC into its reserves, Pennsylvania aims to protect its financial future from the impact of inflation, as highlighted by Rep. Mike Cabell. He emphasized that this move positions the state as a leader in financial resilience and innovation.

Pennsylvania to Lead the Way with Bitcoin Reserve BillIf passed, the bill would make Pennsylvania the first state to hold BTC directly on its balance sheet, setting a significant precedent for others to follow. Cabell highlighted that this move is not only about protecting state finances but also about embracing financial innovation.

The bill follows the recent passage of the Bitcoin Right bill, which secures the rights of residents to self-custody digital assets. Both pieces of legislation are backed by the Satoshi Action Fund, which is also pushing for similar initiatives in other states. Dennis Porter, the fund’s co-founder, expressed optimism that public support for BTC is at an all-time high and expects both bills to be enacted soon.

As BTC’s value has surged, reaching over $93,000 per token recently, this legislative push reflects a broader trend among states exploring digital assets as a hedge against economic instability. The bill will now proceed to the Republican-led Senate for review before potentially reaching Governor Josh Shapiro’s desk for approval.