close
close

Semainede4jours

Real-time news, timeless knowledge

Pennsylvania Lawmakers Want a Strategic Bitcoin Reserve
bigrus

Pennsylvania Lawmakers Want a Strategic Bitcoin Reserve

House Representatives in Pennsylvania have introduced a bill that would introduce a strategic Bitcoin reserve at the state level. This comes after noise around a potential national Bitcoin reserve increased after: Donald Trump secures re-election As President of the United States.

The bill would allow the state Treasurer to invest “up to 10%” of the State General Fund, Rainy Day Fund, and State Investment Fund in Bitcoin. It’s a move to protect Pennsylvania’s funds against inflation, the legislature note saidThis situation has eroded the purchasing power of the state in recent years.

for General Fund This alone could result in Pennsylvania purchasing up to $970 million worth of Bitcoin.

“Inflation has impacted Pennsylvania’s purchasing power by approximately 20 percent over the past 4 years, and we need solutions that can offer stability during uncertain economic times,” the statement said. “Bitcoin, which has appreciated significantly over the years, could help Pennsylvania keep pace with inflation and economic change.”

In recent years, inflation peaked at 9.1% in June 2022 and has since fallen to 2.4% in September. US inflation calculator. This means that the dollar held by the government technically decreased in value during this time. In the same period, Bitcoin (Bitcoin) went from about $22,900 to $89,150; 289% increase.

For now the bill is just Introduced to Parliament With support from Pennsylvania Republican Reps. Mike Cabell and Aaron Kaufer. In order for the bill to become law, it must go through eight more stages, including the review of the House of Representatives, its introduction and review in the Senate, and finally the execution process.

This state-specific Bitcoin movement occurs during conversations around a topic. national strategic Bitcoin reserve Things escalated after Trump’s re-election.

Enhancing Innovation, Technology and Competitiveness through Optimized Investment Nationwide Act; Bitcoin Law—It was raised by several US politicians in July and early August, but Bitcoin lost strength after its price fell.

The bill is sponsored by Trump and led by Senator Cynthia Lummis (R-WY). If enacted in its current form, the Treasury Department would be expected to purchase 1 million BTC over a five-year period. This would account for approximately 5% of the total Bitcoin supply and cost approximately $89 billion at its current price.

When Trump’s next term became certain, Lummis boasted on Twitter that the opposite was possible. he said decrypt“We are better positioned than ever to build a brighter economic future by building a strategic Bitcoin reserve.”

Lummis claims the new strategic Bitcoin reserve will hold the leading cryptocurrency for 20 years before the US decides whether to sell it. Still, similar to Pennsylvania’s Bitcoin reserve bill, the bill has not yet advanced to the Senate floor.

While skeptics think it will still take a long time to convince enough senators and representatives that it’s a good idea, Lummis sees the next Congress as the perfect time to toe that line.

Edited by Stacy Elliott.

Daily Briefing Bulletin

Start each day with the most important news right now, plus original features, a podcast, videos and more.