New Mexico has become the latest American state to detect the establishment of a strategic bitcoin reserve.
The State Legislature has launched the Senate Bill 57 (SB57), titled “Strategic Bitcoin Reserve Act”, which proposes to allocate 5% public funds to Bitcoin.
The bill was presented by Senator Ant Thornton.
The proposed law aims to create an alternative treasure for New Mexico, which brings diversity to state investments by incorporating bitcoins with traditional assets such as stocks and bonds.
The purpose of allocation of 5% is to capitalize on the potential long -term value of bitcoin.
Under the proposed structure, the State Investment Officer will oversee a bitcoin reserve with guidance and inspection from the State Investment Council. The bill also highlights the use of cold storage to safely keep the state’s bitcoin assets.
Senator Thornton said that the initiative will not only bring diversity in New Mexico’s investment portfolio, but also ranks the state as a reversal within the rapidly expanded cryptocurrency sector.
He also emphasized potential economic benefits, including attracting cryptocurrency businesses in the region and promoting local economy.
The bill includes transparency and public reporting measures to further increase accountability.
Other American states chased bitcoin reserves
New Mexico is not alone in considering such a step. For example, Indiana is demanding bitcoin ETF exposure for its state retirement fund through a bill introduced by representative Jake Teska at the end of January.
Last month, Illinois took a step forward to embracing cryptocurrency The advancement of a bitcoin strategic reserve bill,
The law, House Bill 1844, introduced by state representative John Cabello, will allow the state to keep bitcoin as part of its store.
The bill was sent to the Rules Committee on 29 January before it moved towards possible approval by the legalists.
Similarly, Utah and Other states have proposed laws to include bitcoins in their financial strategies.
Overall, around 15 American states have introduced bitcoin -related bills, which reflect the increasing interest in adopting cryptocurrency.
These steps are aligned with the federal government’s comprehensive digital asset stockpile scheme.
David Sachs, Crypto and AI Caesar, recently confirmed that the government is evaluating a proposal to set up a national bitcoin reserve, although details and deadlines are uncertain.
Potential effects on bitcoin
The growing interest from American states in adding bitcoin to its portfolio is expected to affect its market dynamics.
Currently, Bitcoin is trading at $ 97,240.13, showing a decrease of 0.6% in the last 24 hours. Its 24-hour lower and high stand is at $ 96,301.67 and $ 99,113.20 respectively.
If the proposals of Utah and New Mexico are approved and public funds are invested in bitcoin, analysts are estimated to increase the market cap of asset.
Such tricks can not only increase prices, but often contribute to reduce the instability associated with bitcoin.
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