Pennsylvania Ready To Invest $1 Billion In Bitcoin

Little by little, American states are entering the race for Bitcoin. More and more legislators see in this flagship crypto a strategic option to protect public finances against rampant inflation. The latest news: Pennsylvania is considering a major investment in Bitcoin, illustrating a trend where BTC is establishing itself as a shield against economic instability.

Bitcoin: A strategic reserve for Pennsylvania?

Latest Bitcoin news: On November 13, Pennsylvania Representative Mike Cabell made a strong statement with a proposal that could make a lot of noise in the halls of other states. This bill would allow the state treasurer to invest up to 10% of its funds in Bitcoin, an unprecedented move aimed at countering the harmful effects of inflation.

Inspired by financial giants like BlackRock and Fidelity, already advocates of the BTC strategy, Cabell views Bitcoin as a refuge.

https://twitter.com/Dennis_Porter_/status/1857114672681423063

“In times of uncertainty, a decentralized currency can stabilize our financial future,” he emphasized.

• 10% of Pennsylvania’s funds, potentially over one billion dollars, could be invested in BTC;
• $9.7 billion in the State’s General Fund;
• $7 billion in the Rainy Day Fund, already ready to enter the crypto space.

The adoption of Bitcoin at the state level, such as Florida, shows a desire to diversify and strengthen reserves in the face of global economic shocks. This strategic reserve proposal is also supported by Aaron Kaufer, co-sponsor of the bill, who hopes to convince the skeptics in the legislature.

Inflation in the United States: The states’ response

With inflation continuing to rise, the United States is seeking solutions to protect its economy. Pennsylvania is not the only one considering BTC. At the national level, Republican figures like Cynthia Lummis are advocating for a strategic Bitcoin reserve within the federal government, hoping this approach will soon become a reality when their party takes control of the Senate in 2025.

In the face of economic uncertainties, countries like El Salvador and Bhutan have already integrated Bitcoin into their reserves.

Pennsylvania’s initiative could inspire other states, leading to a broader adoption of crypto. Republicans, for their part, hope that their future leader, Donald Trump, will be open to this idea despite the predictions of Galaxy Digital founder, Mike Novogratz, who remains skeptical.

One thing is sure: Bitcoin has gained legitimacy in the eyes of American decision-makers, becoming much more than just a digital currency.

Thus, the rebound of inflation in the United States seems to be propelling pro-Bitcoin initiatives. If the trend persists, this crypto could well rise to become a bulwark for the economy of the United States.