Ohio House Republican leader Derek Merrin has introduced a groundbreaking bill that could potentially revolutionize the state’s financial strategy. The bill, known as HB 703 or the Ohio Bitcoin Reserve Act, aims to establish a Bitcoin fund within the state’s treasury. If passed, Ohio would become the third U.S. state to propose such a move in just over a month, following similar actions in Texas and Pennsylvania.
Merrin’s bill would grant the state treasurer the authority to purchase Bitcoin as part of Ohio’s asset allocation strategy, although it would not be mandatory. The rationale behind this move, according to Merrin, is to safeguard Ohio’s tax dollars from the devaluation of the U.S. dollar. In a statement, Merrin emphasized the importance of embracing technology and ensuring the stability of Ohio’s finances in the face of economic uncertainty.
The Ohio Bitcoin Reserve Act is expected to serve as a framework for the upcoming legislative session, which is set to begin in January 2025 after the current session ends on December 31, 2024. This bill comes on the heels of similar initiatives in Texas and Pennsylvania. In Texas, House Rep. Giovanni Capriglione introduced the Texas Strategic Bitcoin Reserve Act, proposing Bitcoin as a reserve asset for the state. Meanwhile, in Pennsylvania, Rep. Mike Cabell put forth a proposal to allow the state’s treasury to hold up to 10% of its assets in Bitcoin as a hedge against economic instability.
Merrin, a vocal supporter of cryptocurrency, believes that Bitcoin has the potential to revolutionize finance and strengthen Ohio’s financial position. He stated, “We must have sound money – it’s like digital property rights for everyone who owns it.” With the growing momentum behind state-level Bitcoin reserves, the U.S. may be witnessing a shift in how governments approach digital currencies.
The introduction of the Ohio Bitcoin Reserve Act underscores the increasing acceptance and adoption of Bitcoin at the state level. As more states explore the potential benefits of incorporating Bitcoin into their financial strategies, the landscape of digital currencies in the U.S. is likely to evolve. Ohio’s bold move to embrace Bitcoin as a reserve asset could set a precedent for other states to follow suit, signaling a new era in the intersection of technology and finance.