Arizona Is About to Make History by Becoming the First U.S. State to Have a Bitcoin Reserve

With the approval of various historic bills, the state could allocate up to 10% of its public assets into cryptocurrencies, paving the way for a new era in American public finance.

The U.S. state of Arizona is poised to make history by becoming the first to hold bitcoin in its public funds. After the state House approved various historic bills that could see the state invest up to 10% of its public assets in digital assets, including bitcoin and NFTs, Governor Katie Hobbs will decide on the bills that could allocate up to $3.14 billion.

This measure will also create a strategic digital asset reserve, the “Digital Assets Strategic Reserve Fund“, to manage these investments, using seized cryptocurrencies and future budget allocations. This fund will benefit from full transparency through blockchain auditability and strict risk control, ensuring optimal management of the state’s digital assets.

The legislation, which passed the Senate on Friday and the House on Monday, will also allow the state to invest in NFTs and other digital assets, showcasing the state’s openness to exploring the possibilities of the Web3 ecosystem.

Inspired by the Integration of Bitcoin in Other States

This initiative follows the footsteps of several other states, such as Texas and Florida, which are exploring the integration of bitcoin into their public finances.

The state of Arizona is drawing inspiration from these endeavors and the administration of President Trump, who introduced a similar measure at the federal level in 2019 with the creation of a cryptocurrency task force to explore the creation of a U.S. bitcoin.

This bill could mark a turning point in how governments manage their public reserves. It is a decisive step that could revolutionize the American financial landscape.

A Record Investment That Could Boost Bitcoin

With this decision, Arizona could quickly become one of the largest institutional holders of bitcoin among U.S. public entities, after the city of Miami. This move is seen as a strong signal to the markets, highlighting the growing acceptance of BTC as a sovereign and secure asset for public reserves. The potential impact on the Bitcoin market could be significant, especially with an investment of this magnitude.

Indeed, a bitcoin reserve of $3.14 billion could exert significant upward pressure on the market. Currently at $94,955, some analysts believe that such institutional investments could push bitcoin to $106,000 in the short term, or even up to $210,000 by the end of 2025, according to Peter Chung’s forecasts.

Thus, Arizona’s initiative could not only strengthen the legitimacy of BTC as a sovereign asset but also catalyze a substantial appreciation in its value.

A Pioneer in Integrating Bitcoin into Public Funds

In conclusion, the U.S. state of Arizona could soon become a pioneer in integrating bitcoin within American public finances. By allocating part of its assets into cryptocurrencies, the state is opening the way to a new era for sovereign reserves. The focus is now on Governor Katie Hobbs’s decision, which could seal this historic first and follow in the footsteps of Trump, by making BTC a state asset.