North Dakota Proposes to Buy Bitcoin with State Funds

Lawmakers in North Dakota, America’s 19th largest state, have proposed a bill to divert some of its state funds to buy the pioneering cryptocurrency, Bitcoin.

Bitcoin adoption among states in the United States has reached a fever pitch. Those yet to gain exposure to the crypto firstborn are looking to join the bandwagon, with the Midwestern state of North Dakota being the latest to propose holding the asset.

On Friday, six North Dakota legislative assembly members proposed buying Bitcoin. The filing encouraged the state treasurer and investment board to diversify their reserve funds to digital assets and precious metals.

Bitcoin: A Hedge Against Inflation

The bill’s sponsors cited growing inflation, which has affected the purchasing power of funds held in the state’s reserve. As a result, acquiring a store of value like Bitcoin could help safeguard the state treasury’s funds.

Furthermore, investment diversification is a core principle for sustaining North Dakota’s financial future against economic hazards. The proposal urged the state to invest some of its general, budget stabilization, and legacy funds in Bitcoin.

Meanwhile, the bill coincided with a similar proposal from another US state, New Hampshire. Lawmaker Keith Ammon filed a motion for New Hampshire to adopt Bitcoin as a strategic reserve asset.

The bill suggested diversifying the state’s holdings into Bitcoin exchange-traded funds (ETFs) and precious metals like gold, silver, or platinum. New Hampshire will hold these valuables through a qualified custodian and other secured custody solutions.

Surging State-Level Bitcoin Adoption

North Dakota and New Hampshire are not the only states interested in Bitcoin. Notably, several others have shown interest in holding the premier asset. For instance, Pennsylvania proposed a state-managed Bitcoin reserve, intending to invest up to 10% of its $7 billion emergency funds in it.

Florida’s chief financial officer, Jimmy Patronise, has also advocated for a Bitcoin reserve. He proposed throwing in a portion of the state’s retirement funds into a worthy investment such as Bitcoin.

Meanwhile, a similar proposal is ongoing in Texas and Alabama amid growing interest. The states seem poised to position themselves ahead of the proposed Bitcoin adoption at the national level.