New Hampshire Becomes the First U.S. State to Create a Strategic Reserve… in Bitcoin

A few years ago, the very idea would have brought a smile. Today, it has become law. New Hampshire has just become the very first U.S. state to create a strategic reserve… in bitcoin. Yes, you read that right. Crypto is no longer just in the wallets of geeks or sleepless traders, it officially enters public accounts.

This is a small state, and yet it has taken a big step that could change the face of finance. It all started with the introduction of HB 302, a bill aiming to grant the state treasurer the possibility to invest a portion of public funds in digital assets.

The bill passed the House in March and the Senate in April, quickly advancing through the legislative stages. It was finally signed by Governor Kelly Ayotte on May 6, marking a turning point.

The state treasurer will now be able to allocate up to 5% of the state’s portfolio to "leading digital assets". But don’t expect any memecoins or randomly chosen tokens. The law sets clear conditions: only assets with a market capitalization of more than $500 billion are authorized. To date, this leaves only one candidate in the running: bitcoin.

Of course, one might think the state will store its satoshis in an old Ledger hidden under a desk. But no. The text of HB 302 is precise about custody conditions:

This ensures that the public bitcoins are well protected and managed according to standard procedures for optimal performance. New Hampshire wants to do this properly, setting clear rules and engaging in best practices, much like a good portfolio manager would.

The goal is to add an arrow to the state’s financial quiver, aiming for optimal returns while taking measured risks.

This isn’t the first time such an attempt has been made. In recent years, several other states, including Florida, Texas, and Arizona, have tried to introduce similar bills to diversify state treasury investments with bitcoin. However, these attempts were met with obstacles and failed to pass into law.

But now, in 2024, with the signature of Governor Ayotte, HB 302 is approved, signed, and will be enacted.

Naturally, bitcoin fans are pleased. Dennis Porter, from the Satoshi Action Fund, which pushes for greater use of bitcoin in society, calls this a “model to follow”. The idea is simple: why let the dollar erode with inflation when you can store some BTC in anticipation of uncertain tomorrows?

Maybe this is the core of the story. Bitcoin is starting to take the place gold long held in the collective imagination: a safe haven for value in times of crisis. And while El Salvador has already introduced bitcoin into its economy and legal tender, New Hampshire is establishing it as a strategic asset, a long-term investment for the state’s wealth. It’s a way of saying: “we’re not going as far as paying taxes in BTC, but we take it seriously.”

Bottom line? What looked like a crazy bet is gradually becoming a state strategy where even the Czech Republic could invest 7 billion dollars. And this could very well be the start of a trend: other states, other countries could be inspired by this committed bitcoin turn. So, just a flashy move or the beginning of a new budgetary era? We’ll be watching closely.