Massachusetts Proposes Bill to Establish Strategic Bitcoin Reserve Fund
Massachusetts has introduced legislation to establish a strategic Bitcoin reserve, presented by Republican Senator Peter Durant. This move is notable as Massachusetts is traditionally a Democratic stronghold.
Key Details of the Massachusetts Bitcoin Reserve Legislation
- The bill proposes creating a fund named Commonwealth Bitcoin Strategic Reserve, managed by the state treasurer.
- The fund will allow purchases of Bitcoin and other cryptocurrencies using unspent funds from the Commonwealth Stabilization Fund.
- The investment is capped at 10% of the stabilization fund, approximately $9 million based on its current $9 billion amount.
- Once acquired, the state Treasury can loan the crypto assets to generate additional returns without increasing financial risk.
- Deb Goldberg, the state treasurer, has not yet commented on the proposal.
Global Context: Other Regions Exploring Bitcoin Reserves
- Hong Kong and Germany are also considering strategic Bitcoin reserves; Hong Kong already has 12 crypto-linked ETFs valued at around HK$7.4 billion.
- Germany is exploring collaboration between the European Central Bank and the German Bundesbank to add Bitcoin to their reserves.
- Texas is pursuing a similar initiative with a bill aimed at stabilizing the economy and combating inflation through a strategic Bitcoin reserve.