Illinois and Indiana Proceed to Create Strategic Bitcoin Reserves

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Illinois’ HB1844 bill is designed to establish a Bitcoin reserve fund, which will serve as a means of protecting against economic volatility and inflation.

Illinois and Indiana have introduced legislation to establish a strategic Bitcoin reserve. They are the latest addition to the expanding number of US states that are investigating Bitcoin as a financial asset.

Indiana’s bill differs marginally from Illinois’s goal to establish a Bitcoin reserve fund. It investigates the potential of blockchain technology to improve the operations of state agencies. Furthermore, the measure investigates investments in Bitcoin exchange-traded funds (ETFs).

Residence Representative John M. Cabello of Illinois has introduced House Bill 1844 (HB1844), which is also known as the Strategic Bitcoin Reserve Act. The measure emphasizes the potential of Bitcoin as a decentralized, finite digital asset that could function as a hedge against economic volatility and inflation.

“A strategic bitcoin reserve is consistent with Illinois’ dedication to promoting innovation in digital assets and ensuring the financial security of Illinois residents,” the bill stated.

The Strategic Bitcoin Reserve Fund, for which the State Treasurer is responsible, is the objective of the proposed legislation. It includes provisions for the acceptance of Bitcoin donations from government entities and residents.

Additionally, the measure mandates a minimum holding period of five years. Consequently, the state would be unable to sell, transfer, or convert any Bitcoin that was added to the fund until the specified time had elapsed.

Additionally, the law establishes strategies for safeguarding and administering the fund. It necessitates transparency through consistent reports and grants the State Treasurer the authority to establish the requisite regulations.

In the interim, Indiana is adopting a slightly different strategy. Representatives Shane Lindauer and Cory Criswell, along with state Representative Jake Teshka, are the authors of House Bill 1322, which delves into the strategies for Bitcoin investment and blockchain adoption.

The measure instructs the Department of Administration to investigate the potential of blockchain technology to enhance the efficacy of government, the security of data, and the efficiency of the consumer experience.

“The department of administration (department) will issue a request for information to investigate the potential of blockchain technology to enhance the convenience, experience, data security, and privacy of consumers and to achieve greater cost efficiency and cost-effectiveness for a state agency.” As stated in HB1322.

Additionally, it facilitates state-managed investment in Bitcoin. The law authorizes the investment of funds from the public employees’ retirement fund, state teachers’ retirement fund, and public officers’ funds in Bitcoin exchange-traded funds (ETFs) that have been approved.

Also Read: South Dakota Wants Bitcoin Deposit as More States Join Trend

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