Bitcoin reserve bill was introduced in New Mexico, where it was proposed to allocate 5 % general boxes to BTC
New Mexico has become the latest US state to explore the creation of the strategic bitcoin reserves.
The legislative body of the state submitted the Senate Law 57 (SB57), entitled “Strategic Bitcoin Reserve Law”, which proposes allocating 5 % of Bitcoin’s public funds.
The draft law was submitted by the Senator You Thornton.
The proposed legislation aims to create an alternative wardrobe for New Mexico, and diversify state investments by including bitcoin along with traditional assets such as stocks and bonds.
The allocation of 5 % aims to take advantage of the long -term value estimate of Bitcoin.
Under the proposed framework, the state investment official will supervise the Bitcoin reserves, with guidance and supervision by the State Investment Council. The draft law also highlights the use of cold storage to hold Bitcoin assets in the state safely.
Senator Thornton stated that this initiative will not only intend to invest in investment in New Mexico, but will also put the country as an innovative in the expanded currency sector quickly.
He also emphasized possible economic benefits, including attracting cryptocurrencies to the region and strengthening the local economy.
The bill also includes transparency measures and general reports to enhance accountability.
Other American countries are following bitcoin reserves
New Mexico is not alone in looking at such a step. Indiana, for example, seeks to be exposed to Bitcoin ETF for government retirement funds through a draft law presented by actor Jake Teshka in late January.
Only last month, Illinoi took a step forward in adopting the cryptocurrency with the Bitcoin Strategic Bill.
The legislation, the draft law of the House of Representatives 1844, presented by the representative of the state, John Capello, will allow the state to hold bitcoin as part of its reserves.
The draft law was referred to the rules committee on January 29 for further review before moving towards potential approval by legislators.
Likewise, Utah and other states have suggested legislation to integrate bitcoin into its financial strategies.
In total, about 15 American states have inserted bills related to bitcoin, which reflects the increasing interest in adopting the encrypted currency.
These moves are in line with the broader digital assets stock plan.
David Sacks, Crypto & Ai CZAR, recently stressed that the government is evaluating a proposal to create a national bitcoin reserve, although the details and timelines are still not confirmed.
The potential effect on bitcoin
The increasing interest from the United States is expected to add bitcoin to its governor to the market dynamics.
Currently, Bitcoin is trading at 97,240.13 dollars, which reflects a 0.6 % decrease over the past 24 hours. Its low and high position 24 hours is 96,301.67 dollars and 99,113.20 dollars, respectively.
If the proposals of such received from Utah and New Mexico are approved and public funds are invested in Bitcoin, analysts expect an increase in the maximum asset market.
Not only such movements have been able to increase prices, but also contribute to reducing the volatility associated with bitcoin.
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