The Bitcoin Strategic Reserve Bill (BTC) of Virginie-Western would give the State more sovereignty of the Federal Government and a potential digital currency of the Central Bank (CBDC), said the Senator of the Chris Rose State in Cointelegraph in an exclusive interview.
“You hear these rumors that there are people from the federal government who want to have a digital currency from the central bank,” said Rose. “And people don’t want that. People want a decentralized currency. They want freedom. “
The bill, presented in February, aims to allow the State Treasury to invest up to 10% of public funds in precious metals such as gold and money, stablecoins or any digital active ingredient which has experienced market capitalization of $ 750 million or more in the last 12 months. Currently, the only digital asset with such market capitalization is Bitcoin.
The senator of the state of Virginia-Western Chris Rose. Source: Cointelegraph
Rose, the sponsor of the bill, said that the reason why they had decided on the demand for market capitalization was to allow the State to have an exposure to cryptocurrency, but not to be trapped “in everything like even”.
The adoption of Bitcoin at the state level “would give us a little more state sovereignty,” added Rose. “And I think this is one of the reasons why you see a lot of people normally buy [Bitcoin] For themselves, want to see their government of the state doing the same. »»
He added that an allocation of public funds at 10% would be a “good way to present [Bitcoin] In the state “while avoiding all fear of people who do not understand digital assets.” It is a good way to cap this where they feel comfortable, but which also give us at least one decent exhibition too. “
Bitcoin: “very powerful” investment and freedom tool
Rose said that one of the obstacles to the adoption of the bill is fear, especially among those who do not understand cryptocurrency. “Like any other state, we have people who understand it. We also have people who don’t understand it, and people are always afraid of what they don’t know. ”
He added that “once they understand it, they realize that it is a very powerful investment tool and the freedom that each of us to adopt.”
Extract from the Virginie-Western Bitcoin reserve bill. Source: West Virginia legislature
The Governor of Virginia-Western, Patrick Morrisey, who considered a future state economy powered by the crypto and other technologies, will not be a roadblock, said Rose. And the treasurer of the State, which Rose consulted before presenting the bill, will not do so either.
However, according to Wvnews, a publication of Virginie-Western, certain legislators and financial experts remain skeptical. The investment of state funds in Bitcoin can be risky due to volatility and prices’ prices oscillations, which can cause financial instability and make Bitcoin a controversial choice for state investments.
Although Bitcoin’s strategic reserve bills have appeared in the legislatures of states in the United States, certain bills have not succeeded or have suppressed key provisions, including some of those of traditionally conservative states.
Currently, 47 Bitcoin reserve strategic invoices have been presented in 26 states according to Bitcoin laws. While, in most states, the bills have not been introduced or referred to the committees, some have made progress in three: Arizona, Oklahoma and Texas.
In relation: The Texas Senate adopts Bitcoin Strategic Reserve Bill
Rose said that 10% of state funds allocated to precious metals, stablescoins or bitcoin would come from two key areas.
“It would be the assets under the Pensions Fund and the compensation tax fund,” said Rose. “They would be able to give in some of these assets in these assets. We wanted to keep it separated from the Petty Cash fund, which is daily, simply paying the invoices of the State. We wanted to keep it in our assets in the longer term,” he added.
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