According to Fox Business, they’ve introduced a new bill called the Pennsylvania Bitcoin Strategic Reserve Act. If this bill passes, it would allow Pennsylvania’s treasury to invest up to 10% of its savings.
This is the first time a U.S. state has ever considered putting such a big chunk of its funds into cryptocurrency. This will make Pennsylvania a trendsetter for other states to watch. Let’s discover more about this Bitcoin reserve plan.
Why Would Pennsylvania Invest in Bitcoin?
The Pennsylvania Bitcoin Strategic Reserve Act would let the state use a small part of its savings to buy Bitcoin and hold onto it as an investment. The idea is that if Bitcoin’s value goes up, so does Pennsylvania’s money. But if the value of Bitcoin drops, the state could lose some of its investment. Supporters of the bill believe that Bitcoin will continue to become more valuable over time, so the risk is worth it.
PRESS RELEASE: Satoshi Action is proud to position groundbreaking ‘Strategic Bitcoin Reserve’ legislation in the state of Pennsylvania. pic.twitter.com/OSKNW4VcyK
— Dennis Porter (@Dennis_Porter_) November 14, 2024
Pennsylvania has about $7 billion in its treasury reserve. This is the money the state keeps in savings for emergencies or big projects. The new act would allow the state to use up to 10% of this amount, or around $700 million, to buy Bitcoin. That might sound like a lot, but it’s only a small part of the state’s total money. Lawmakers believe that putting a little money into Bitcoin could lead to big returns in the future, like saving a few acorns now in hopes of growing a big oak tree later.
BREAKING: the chances of a ‘Strategic Bitcoin Reserve’ jumps on the news of the Pennsylvania ‘Strategic Bitcoin Reserve’ legislation.
The states will lead.
https://t.co/AbpT9EpoIU pic.twitter.com/oCA19KSCGG
— Dennis Porter (@Dennis_Porter_) November 15, 2024
What’s Next?
For now, the Pennsylvania Bitcoin Strategic Reserve Act is just an idea. Lawmakers still need to discuss and vote on the bill before it becomes law. But if it passes, Pennsylvania would be the first state to invest its money in Bitcoin. This move could make Pennsylvania a leader in using new technologies and inspire other states to try similar investments.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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