After the US states of Pennsylvania and Texas, Ohio has now launched its Bitcoin Strategy Reserve Act.
Ohio welcomes Bitcoin Strategy Reserve Act
According to the document, State Representative Derek Merrin introduced the Bitcoin Reserve Act on December 17, 2024. The act authorizes the State Treasurer to purchase Bitcoin but does not mandate it. With rising inflation and the continual devaluation of the US dollar, the move to include Bitcoin in the state’s treasury has become increasingly relevant.
🚨Today, I filed HB 703 to create the Ohio Bitcoin Reserve within the state treasury!
Provides state treasurer authority & flexibility to invest in #Bitcoin
This legislation creates the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our… pic.twitter.com/hSWas2qeQd
— Derek Merrin (@DerekMerrin) December 17, 2024
Rep. Merrin explained, “The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation. Ohio must embrace technology and protect tax dollars from eroding.”
Merrin further suggested that the new pro-crypto, pro-Bitcoin Trump administration might establish a national Bitcoin Reserve, aligning with proposals like that of Wyoming Senator Cynthia Lummis to bolster America’s financial position. Highlighting Bitcoin’s value as a digital property right for holders, Merrin remarked, “This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin to strengthen our state finances.”
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Ohio’s initiative has been celebrated across the crypto community. Andrew Burchwell, Executive Director of the Ohio Blockchain Council, stated, “Governments worldwide are considering investment in Bitcoin as a strategic reserve asset, including the US federal government and states like Texas, Pennsylvania, and Florida. I applaud Representative Merrin for introducing this legislation to ensure Ohio is positioned as a leader in innovation and technology. I look forward to working with the legislature in 2025 to ensure that Ohio makes the most of this opportunity.”
Merrin anticipates that his bill will serve as a framework for the next legislative session and hopes lawmakers will act quickly to pass it next year.
Ohio’s move comes against an intriguing backdrop, as many experts predict that Bitcoin reserve bills could propel Bitcoin’s price to $1 million, from its current market price. A paper authored by Dr. Murray A. Rudd and Dennis Porter of the Satoshi Act Fund suggests, “Our results indicate that – with very plausible daily withdrawals of Bitcoin to strategic reserves – the market price could exceed $1M per Bitcoin by January 2027 to early autumn 2028 for bull and conservative scenarios, respectively. ” The paper also expects higher market levels sooner if institutional adoption accelerates and Bitcoin’s liquid supply is rapidly reduced, which could imply “hyperbolic price acceleration.”
Also Read: European MP Calls For Strategic Bitcoin Reserve Similar to US
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