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Arizona Senate Approves Bitcoin Reserve Bill

Coin WorldTuesday, Jan 28, 2025 1:39 am ET

1min read

The Arizona Senate Committee has approved a bill that would establish a strategic Bitcoin reserve for the state. The bill, sponsored by Senator Wendy Rogers, aims to position Arizona as a leader in the cryptocurrency space and attract tech talent to the region.

The proposed reserve would be managed by the Arizona State Treasurer's Office and would initially consist of $1 million in Bitcoin. The bill also includes provisions for the state to purchase additional Bitcoin as its value increases, with the goal of eventually holding 10% of the state's reserve funds in cryptocurrency.

The approval of the bill comes amid a growing interest in cryptocurrencies among state governments. In March, the city of Miami, Florida, became the first city in the United States to allow residents to pay for city services using Bitcoin. Additionally, the state of Wyoming has passed several laws aimed at attracting cryptocurrency businesses and investors.

However, the proposal has faced criticism from some lawmakers and financial experts who argue that investing in Bitcoin is too risky. They point to the volatile nature of the cryptocurrency market and the potential for significant losses if the value of Bitcoin were to decline.

Despite these concerns, Senator Rogers remains optimistic about the potential benefits of establishing a Bitcoin reserve. She believes that the move will help Arizona stay competitive in the global economy and attract tech talent to the region. Additionally, she argues that the state's investment in Bitcoin could generate significant returns over the long term.

The bill now moves to the full Arizona Senate for a vote. If approved, it would then go to the House of Representatives for consideration. If both chambers pass the bill, it would then be sent to Governor Doug Ducey for his signature.

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