South Carolina has taken a bold step toward integrating digital assets into its financial strategy by introducing a bill to create a state-backed Bitcoin reserve.
Announced on March 27, the proposed legislation aims to use Bitcoin as a hedge against inflation and economic instability.
Strategic Digital Assets Reserve Act (H4256)
The bill, titled the Strategic Digital Assets Reserve Act (H4256), was introduced by Representative Jordan Pace. It would authorize the South Carolina State Treasurer to allocate up to 10% of state-held funds into Bitcoin, with a cap of no more than 1 million BTC. The funds for these investments would come from existing reserves, such as the General Fund and the Budget Stabilization Reserve Fund.
Transparency and Security Measures
The bill emphasizes transparency by requiring the public disclosure of wallet addresses linked to the Bitcoin reserve, enabling citizens to track transactions and verify holdings directly on the blockchain. Additionally, it outlines strict storage requirements, mandating the use of cold wallets or certified custodians to protect the state’s Bitcoin assets.
A Step Toward Digital Asset Integration
In a notable move, the bill also allows South Carolina residents to make voluntary Bitcoin contributions, further aligning the state with the growing trend of digital asset adoption. This bill represents a significant development in South Carolina’s financial strategy, positioning Bitcoin as a potential safeguard against future economic challenges.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/one-more-american-state-introduces-bitcoin-reserve-bill-to-hedge-against-inflation/