Ohio Lawmaker Proposes Bitcoin-Only Reserve Fund

Ohio Lawmaker Proposes Bitcoin-Only Reserve Fund to Position State as Crypto Leader

Ohio is at the forefront of cryptocurrency adoption, with Senator Sandra O’Brien introducing a bill to establish a Bitcoin Reserve Fund for state investments. The initiative aims to position Ohio as a leader in the burgeoning crypto market, allowing the state to secure Bitcoin holdings while fostering innovative financial strategies.

O’Brien noted, “the crypto world is here, and Ohio needs to be a leader,” emphasizing the potential of cryptocurrencies in government operations. Ohio Senate Bill 57, introduced on January 28, 2023, seeks to empower Ohio’s treasurer to exclusively invest in Bitcoin (BTC) as part of a newly proposed “Ohio Bitcoin Reserve Fund.” This legislation mandates that these investments be held for a minimum of five years, ensuring a long-term commitment to digital currency assets. It also requires secure custody solutions, safeguarding the state’s investments against potential cybersecurity threats.

This proposed fund not only reflects a growing acceptance of cryptocurrencies within institutional finance but also addresses concerns about the devaluation of the US dollar. By allowing Bitcoin investments, Ohio aims to provide the state treasurer with greater flexibility in balancing asset allocations. According to Republican House leader Derek Merrin, “the US dollar is being rapidly devalued, and our state Treasurer should have the authority to invest in Bitcoin.”

Ohio’s initiative is part of a wider trend across the United States, where multiple states are exploring legislative frameworks to facilitate cryptocurrency investments. The Ohio bill coincides with similar legislative proposals, including a recent initiative in Utah that would similarly permit public fund allocations to cryptocurrencies. As a growing number of states propose laws related to crypto investments, Ohio is positioning itself among twelve states that have laid the groundwork for treasuries to engage with digital assets.

Senate Bill 57 not only focuses on investments but also encompasses the operational aspects of cryptocurrency within state financial dealings. The bill stipulates that government agencies must accept cryptocurrencies for payments, including taxes and fees, which will subsequently be converted to Bitcoin. This move is expected to streamline payment processes and encourage greater public adoption of cryptocurrency in everyday transactions.

In addition to investment and payment acceptance mechanisms, the bill facilitates a framework for Ohio residents and universities to donate