New Hampshire Proposes Bitcoin Reserve In State Treasury Bill

As per the proposal, Bitcoin will be stored in secure wallets so that there would be no chance of loss or theft.

The exact technologies and the providers who are involved in the process are not known, but the stress on security is in keeping with the understanding of the need for technological application in dealing with digital currencies. Ammon added in a statement,

“The state needs to be ready for the future of finance.”

This bill would also outline the framework for managing the purchasing, storage and tracking of the Bitcoin reserves.

It also requires periodic disclosure and examination of the holdings in the same manner as other regulatory financial assets.

The legislation aims to make New Hampshire a state ready for the digital future of the economy.

Competition from Other States and Federal Interest

New Hampshires action follows increasing attention paid to digital currencies at the state and federal level.

Texas, Ohio and Wyoming have in the past also proposed similar ideas of using Bitcoin in their treasury.

Though none of these has established a Bitcoin reserve, these states are still potential rivals in this new development.

On the federal level, there are advocates of the Bitcoin reserves like Senator Cynthia Lummis.

Attempts to build a national Bitcoin reserve were stepped up last year after former US President Donald Trump recommended that the country increase its cryptocurrency assets.

Under Trumps proposed plan, accumulating a Bitcoin reserve was presented as a strategy to establish U.S. dominance in the cryptocurrency market.

Global and National Trends of Bitcoin Reserves

It is not only the United States that shifted towards the use of Bitcoin reserves. Some countries have already started the process of trying to incorporate digital assets into the financial landscape of their nations.

For example, Brazil is said to be exploring the possibility of including Bitcoin in the countrys central bank assets.

Likewise, Poland has expressed its desire to include Bitcoin into the list of Polish assets in the national treasury.

In the United States, the interest in cryptocurrency reserves is slowly rising in many states. The race to become the first state to adopt Bitcoin is heating up with more than 10 states interested in similar legislation.

The rising participation of governments in cryptocurrency markets is an indication of the assets increasing mainstream adoption.

Since the nations of the world are considering Bitcoin reserves, the use of cryptocurrency in public finance will only grow.

The result of the New Hampshire proposal may set the pace for other states and countries in the regulation of digital assets in their financial systems.