• Illinois has proposed a plan to hold Bitcoin in a state fund for at least five years before selling or using it. The bill is still being reviewed.
  • Arizona, Texas, and a few other states are also planning Bitcoin reserves. Experts think more states might follow.
  • More countries and big companies like BlackRock are investing in Bitcoin, but groups like the IMF and World Bank warn about its unstable price.

A bitcoin reserve bill is now introduced to the state’s legislative body of Illinois, hence one of the newest U.S. states venturing into a financial strategy regarding Bitcoin. Sponsored by State Representative John Cabello, the House Bill 1844 or HB1844 recommends the setting up of a Bitcoin reserve in the form of a special fund within the state treasury.

Illinois Proposes a Bitcoin Reserve

A crucial condition of the bill is that any Bitcoin introduced into the fund should be kept in the account for at least five years before it can be sold, converted, or transferred to another. This approach tries to introduce Bitcoin into state finance with long term stability in the holdings. The bill has been referred to the Rules Committee for further discussion and approval.

More U.S. States and Countries Show Interest in Bitcoin Reserves

Illinois is not the only state considering Bitcoin reserves. Just a day before this proposal, Arizona made progress with its own Bitcoin reserve legislation, allowing public funds and pensions to invest in Bitcoin. Texas has also included the creation of a Bitcoin reserve in its 2025 legislative priorities. At least five other states, including Utah, are looking into similar measures. Supporters believe this move could encourage more states to recognize Bitcoin as a financial asset. While a step-by-step approach will allow risk management before wider adoption. Mouloukou Sanoh, CEO of MANSA, sees this as a strong step toward bringing cryptocurrency into traditional finance, though nationwide approval may take time due to regulatory uncertainties.

Illinois Proposes Bitcoin Reserve to Hold Bitcoin in State Fund for 5 Years image 0

Beyond the U.S., central banks in other countries are also considering Bitcoin. The Czech National Bank is exploring a plan to allocate up to 5% of its reserves to Bitcoin, following the example of El Salvador. Governor Aleš Michl stated that Bitcoin could help diversify the bank’s assets. U.S. Senator Cynthia Lummis has again talked about Bitcoin reserves, saying it could help protect against inflation. The Federal Reserve has also said that banks can use crypto, but they need to handle the risks properly.

At the same time, Bitcoin ETFs are becoming more popular. And big companies like BlackRock are investing in them, making Bitcoin more accepted. However, groups like the IMF and World Bank still warn that Bitcoin’s price can be unstable and risky.

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