Ohio State Representative Derek Merrin has introduced the Ohio Bitcoin Reserve Act, also known as House Bill 703. The bill allows for the creation of a Bitcoin fund from the state treasury and, accordingly, allows the State Treasurer to invest in Bitcoin. The proposal focuses on offering flexibility to invest in Bitcoin without mandating its inclusion in the state’s portfolio.
The bill is a result of the concerns over the rapid devaluation of the US dollar, coupled with the need for the protection of public funds. Merrin seeks to have Ohio take the lead concerning the adoption of new financial solutions. He emphasized that Bitcoin could safeguard against inflation and retain the value of the taxpayer’s money besides bolstering the financial stability of the state.
States explore Bitcoin as a strategic asset
Similar legislation has come up in places like Texas and Pennsylvania that are looking to place Bitcoin reserves. Merrin thinks these indicate a broadening trend from governments, at the very least in their aim to hold BTC as a strategic asset. He further believes they will culminate in a national Bitcoin reserve and will do so within the context of wider federal proposals.
The Ohio Blockchain Council commented in support of the bill, saying that House Bill 268 is a step forward in making Ohio progressive in innovation and leadership in technology. They added that BTC has been receiving increasing interest from governments worldwide for financial applications and that Ohio is ahead of the game with the proactive approach that may serve as a model for other states.
As the legislative session winds down, Merrin views the bill as more of a framework piece that could see some real action next year, 2025, in providing substantive material for lawmakers to pick up any potential coming out from Bitcoin.
This, however, reflects Ohio’s attempt to integrate new technologies into the financial approaches being adopted within the state. The move that the state has taken toward the use of BTC as a potential reserve asset will help them secure the future and keep them at par with other broader trends in digital finance.
