Illinois Moves Closer to Establishing a Bitcoin Reserve

The state of Illinois is one step closer to becoming the first U.S. state to hold Bitcoin in its fiscal reserves. On January 29, the Bitcoin Strategic Bill was referred to the Rules Committee, paving the way for the establishment of regulations and the fast-tracking of its approval process.

A New Strategic Asset for Illinois

Illinois State Rep. John Cabello introduced the bill to set the groundwork for Bitcoin to become the new strategic asset of Illinois. Under the proposed legislation, the Illinois State Treasurer would manage the fund and be permitted to accept gifts, grants, and donations of Bitcoin from Illinois residents and governmental entities to make deposits.

Key highlights of the proposed legislation include:

  • The State Treasurer would hold the Bitcoin for a minimum of five years.
  • After the five-year holding period, the State Treasurer may transfer, sell, or convert the Bitcoin into another cryptocurrency.
  • The bill includes language on managing and securing the fund, reporting on fund status.
  • Illinois residents would be allowed to make voluntary donations in Bitcoin to the State’s fund.

Growing Adoption of Bitcoin Reserves

The idea of a Bitcoin reserve is not unique to Illinois. Cynthia Lummis, a longtime proponent of Bitcoin in the U.S. Congress, has stated that Bitcoin could serve as a hedge against inflation and volatile economic conditions.

One of the first orders of business will be to hold public hearings on the Strategic Bitcoin Reserve.

Other institutions are also exploring the idea of Bitcoin-based reserves. The Governor of the Czech National Bank, AleΕ‘ Michl, has suggested allocating up to 5% of the bank’s reserves in Bitcoin. Additionally, Governor Dan Patrick of Texas has announced plans to establish a β€œTexas Bitcoin Reserve” as one of his top legislative priorities for the 2025 session.

Stay up-to-date with the latest news on cryptocurrencies and Bitcoin reserves at Global Crypto News.

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