Arizona Senate Committee Approves Bitcoin Investment Bill

Arizona Takes First Step Toward State Bitcoin Investment with Committee Approval

The Arizona State Senate's Commerce and Workforce Development Committee has approved a bill that would allow the state to invest in Bitcoin. The bill, sponsored by Republican Senator Wendy Rogers, passed the committee with a 5-2 vote.

The legislation, Senate Bill 1175, would direct the Arizona State Treasurer to invest up to 5% of the state's general fund balance in Bitcoin. The bill also requires the treasurer to report on the investment's performance to the legislature annually.

Rogers, who introduced the bill, believes that investing in Bitcoin will provide the state with a hedge against inflation and currency devaluation. She stated, "Bitcoin is a store of value, and it's a way to protect our purchasing power."

The bill's approval comes amidst a growing trend of institutional investors and governments exploring Bitcoin as a potential investment. MicroStrategy, a Virginia-based software company, has purchased over 470,000 Bitcoins, worth approximately $30 billion, as part of its treasury strategy.

Metaplanet, a Japanese investment firm, has also announced plans to raise $745.5 million to purchase Bitcoin, aiming to grow its holdings to 21,000 BTC by 2026. The firm believes that investing in Bitcoin is an essential strategy for achieving financial stability amidst currency devaluation.

The Arizona bill still needs to pass the full Senate and House before it can be signed into law by the governor. If enacted, Arizona would become the first state in the United States to invest in Bitcoin as part of its general fund.