New Mexico is contemplating the establishment of a Bitcoin reserve, joining several other states in this initiative. A VanEck executive projects that at least $23 billion could be directed into Bitcoin if related legislation is passed. Meanwhile, the state’s crypto taskforce, spearheaded by David Sacks, is expected to review the proposal.
New Mexico Senator Forwards A Bitcoin Reserve Bill
Recently, New Mexico took a significant step by introducing the “Strategic Bitcoin Reserve Act” (SB 175), backed by Senator Anthony Thornton. This bill proposes allocating 5% of the state’s public funds to Bitcoin. The funding will come from various sources including the grant permanent fund. New Mexico now joins approximately 20 other states such as Texas and Ohio in evaluating such reserves.
VanEck Expects $23 Billion To Flow Into BTC Should Bills Pass
According to Matthew Sigel from VanEck, passing legislation in the states could potentially direct over $23 billion into Bitcoin, resulting in substantial reserves. This movement might also trigger increased interest from pension funds, possibly resulting in Bitcoin prices reaching lofty heights.
Will The United States Lead The Way?
The concept of a national Bitcoin reserve is being contemplated at the federal level. David Sacks emphasized the need for clear regulations before moving forward with these ideas, especially concerning stablecoins. The resolution for a Bitcoin reserve, which may operate alongside the American Sovereign Wealth Fund, is subject to review.
Key Takeaways
- New Mexico is considering creating a Bitcoin reserve akin to initiatives seen in states like Florida and Ohio.
- Bitcoin is increasingly regarded as a safeguard against inflation.
- The United States is positioned to potentially lead the globe in establishing a strategic national Bitcoin reserve.
