The proposal calls for the creation of a strategic Bitcoin reserve. It could position the state as a frontrunner in embracing crypto.
If passed, this bill would allow South Dakota to hold Bitcoin as part of its state reserves. Many see this move as both bold and timely, given the growing interest in digital currencies worldwide.
This proposal marks a significant shift as more states look for ways to incorporate Bitcoin into their financial ecosystems. South Dakota’s plan would set a precedent, showing that crypto can be more than just a speculative asset. It can also play a key role in securing a state’s economic future.
BIG BREAKING: A bill to create a ‘Strategic Bitcoin Reserve’ has been filed in the state of South Dakota by @ManhartLogan . pic.twitter.com/iU9KoIRRZ2
— Dennis Porter (@Dennis_Porter_) January 28, 2025
Supporters of the bill argue that holding Bitcoin in state reserves could help shield South Dakota from inflation and economic instability. Given Bitcoin’s potential to act as a hedge against fiat currency devaluation, proponents believe that adopting Bitcoin could safeguard the state’s long-term financial health.
More About Bitcoin Reserve
Senator Cynthia Lummis has proposed a bold plan to create a strategic Bitcoin reserve aimed at reducing the U.S. national debt. The proposal suggests purchasing 200,000 BTC annually for the next five years and holding it for at least 20 years.
🇺🇸 NOW: Senator Cynthia Lummis proposes a strategic Bitcoin reserve:
• Buy 200,000 BTC annually for 5 years.
• Hold for at least 20 years.
• Goal: Halve the U.S. national debt in 20 years.Could Bitcoin reshape America’s financial future? pic.twitter.com/aEm4eOBEkD
— Cointelegraph (@Cointelegraph) January 28, 2025
The ultimate goal of this initiative is to halve the national debt over the next two decades by leveraging Bitcoin’s potential to increase in value over time. This strategic move reflects Lummis’ belief in Bitcoin as a long-term asset capable of strengthening the U.S. economy and addressing the country’s growing debt crisis.
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