Illinois leads the U.S. in creating first Bitcoin Reserve

Illinois could soon become the first American state to hold Bitcoin in its tax reserves if the legislators approve the Bitcoin reserve strategic proposal.

On January 29, the Bitcoin strategic bill was summary to the rules committee to establish regulations and accelerate its approval process. The representative of the State of Illinois, John Cabello, presented the bill to define the Bitcoin bases (BTC) to become the new strategic asset of Illinois.

Bitcoin Reserve Bill for Illinois

Under the new legislation, the treasurer of the State of Illinois would manage the fund and would be authorized to accept gifts, subsidies and BTC donations of the residents of Illinois and government entities to make deposits. Upon entering the state guard, the BTC must be kept for at least five years.

After a five-year detention period, the state treasurer can transfer, sell or convert BTC to another cryptocurrency. In addition to authorizing the hiring of the treasurer of the cryptocurrency, the bill includes a language on the management and security of the fund, the declaration on the status of the fund and the authorization of the residents of Illinois to voluntarily give the BTC to the fund.

The legislation also allows the Treasurer of the State to adopt rules to administer this reserve. If it has passed, the strategic Bitcoin The reserve law would come into force immediately, potentially making Illinois the first of any American state to implement a formal strategy around a bitcoin reserve.

Growing adoption for Bitcoin reserves:

Cynthia Lummis, a long -standing supporter of the BTC at the US Congress who has lobbié For a strategic Bitcoin national reserve, declares that the BTC could serve as a coverage against inflation and volatile economic conditions. On January 30, she posted that she wanted to hold public hearings on the Bitcoin Strategic Reserve. BTC reserves are increasingly popular with institutions.

On January 29, the governor of The Czech National BankAleš Michl, revealed that Chechy could be the first in Western Europe to hold Bitcoin in its reserves. Michl suggested allocating up to 5% of 140 billion euros in CNB, or 145.6 billion dollars, BTC reserves, a decision that would represent the first step towards institutional cryptography at national level.

In addition, Governor Dan Patrick of Texas announcement that he intends to establish a “Bitcoin reserve of Texas” as one of his main legislative priorities for the session which will take place in 2025.

While large banks and investment companies take more BTC, some American decision -makers are looking for ways to align state and federal reserves on the trend.