Ohio’s Derek Merrin Proposes HB 703, Bitcoin Reserve Bill

A proposed legislation in Ohio seeks to incorporate Bitcoin into its financial plan. Derek Merrin, the Leader of the Ohio House Republicans, introduced the bill. 

Derek Merrin, who was the former Mayor of Waterville, took to X to announce that House Bill 703, filed this week, would enable the state treasurer to invest in Bitcoin (BTC) in order to create an “Ohio Bitcoin Reserve” in the state treasury. His thought behind introducing the bill was that incorporating BTC into the state’s investment portfolio could help hedge against the slow erosion of the purchasing power of the U.S. dollar, thereby helping to retain the value of public funds across generations.

If passed, the proposed law will put Ohio on the map for government crypto adoption by giving the treasurer the authority and flexibility to invest in BTC. Advocates like Cynthia Lummis argue that with BTC gaining acceptance as a form of payment by large businesses and even government agencies in some instances, including it in state reserves would enhance a state’s financial strength. Further, this could push forward more corporate adoption for digital assets, legitimizing its position in global finance, according to Matthew Sigel, who heads the Digital Assets Research wing of VanEck. 

In 2022, Ohio had a public debt of $72.16 billion, according to Statista. Most of Ohio’s debt consists of general obligation bonds and special obligation bonds issued to fund infrastructure projects, education, and other public projects. As a result, if Ohio can now add BTC to its treasury reserves, the state would likely improve its long-term financial solvency. In time, such a strategy could brighten Ohio’s fiscal picture, easing the pressure to raise taxes or cut services and putting the state in a much better position to fulfill such obligations.