An Ohio lawmaker has introduced a bill that could position the state to embrace Bitcoin (BTC). The proposed legislation seeks to establish a state Bitcoin reserve, allowing Ohio to purchase and hold BTC as part of its financial assets.
The bill, HB 703, introduced by Representative Derek Merrin, aims to modernize Ohio’s financial strategies by integrating bitcoin into its treasury. The legislation noted the creation of a framework for the state to acquire, hold, and potentially utilize BTC in various capacities, including as a hedge against inflation and a tool for diversifying state financial reserves.
“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 said.
Merrin further noted that he anticipates the incoming Trump administration will seek to create a national bitcoin reserve, just like Senator Cynthia Lummis proposed to help America’s balance sheet.
The Ohio lawmaker also stated that he expects the bill to serve as a foundation for Ohio’s upcoming legislative session, given that it comes just two weeks before the 135th General Assembly concludes on December 31. Merrin hoped that the bill will lay the groundwork for legislators to address it promptly in the coming year.
“Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money — it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin and strengthen our state finances,” he added.
Bitcoin As a Threat to US Economy
If passed, the bill could have far-reaching implications for Ohio and other states considering similar measures. Advocates argue that holding the crypto asset could provide a hedge against the volatility of fiat currencies and protect against economic downturns. Critics, however, have raised concerns about bitcoin’s volatility and potential risks.
Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc., believes investing in BTC is not wise. He notes that Bitcoin poses a national security threat to the US economy. The American stock broker goes further, adding that government officials squander the public’s funds to purchase the digital asset.
BTC As a Reserve Asset
Meanwhile, other states, like Texas and Pennsylvania, have filed similar legislation to establish Bitcoin reserves. On October 30, 2024, Florida Chief Financial Officer (CFO) Jimmy Patronis pushed to include BTC in state pension funds.
The CFO also proposed that the State Board of Administration (SBA) could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.
