Illinois could soon become the first state in the U.S. to include Bitcoin in its fiscal reserves, provided that lawmakers approve the Strategic Bitcoin Reserve proposal presented by John Cabello to the Rules Committee.
On January 29, the Bitcoin Strategic Bill was referred to the Rules Committee for the establishment of regulations and an expedited approval process. Illinois State Representative John Cabello introduced the bill to pave the way for Bitcoin (BTC) to become a key strategic asset for the state.
Bitcoin Reserve Bill for Illinois
Should this legislation pass, the Illinois State Treasurer would be in charge of managing the fund and would be allowed to accept gifts, grants, and donations of BTC from residents and governmental bodies for deposit purposes. The bill stipulates that once BTC is in the state’s custody, it must be held for a minimum of five years.
After completing the five-year holding period, the State Treasurer would have the option to transfer, sell, or convert BTC into another cryptocurrency. The bill not only permits the hiring of a treasurer to oversee BTC but also includes provisions for the management and security of the fund, as well as the reporting on its status. Furthermore, it would enable Illinois residents to make voluntary BTC donations to the state’s fund.
The proposal also grants the State Treasurer the authority to create rules for the management of this reserve. If enacted, the Strategic Bitcoin Reserve Act would take effect immediately, potentially positioning Illinois as the first state in the U.S. to establish a formal Bitcoin reserve strategy.
Increasing Adoption of Bitcoin Reserves
Cynthia Lummis, a longstanding advocate for BTC in the U.S. Congress, has called for a national Strategic Bitcoin Reserve, suggesting that BTC could act as a hedge against inflation and economic instability. On January 30, she announced her intention to hold public hearings on the Bitcoin Strategic Reserve. The idea of BTC-based reserves is gaining traction among various other institutions as well.
On January 29, Aleš Michl, the Governor of the Czech National Bank, disclosed that Czechia may be the pioneer in Western Europe for holding BTC in its reserves. Michl proposed allocating up to 5% of the CNB’s €140 billion (approximately $145.6 billion) in reserves to BTC, marking a significant step toward institutional cryptocurrency at the national level.
Additionally, Texas Governor Dan Patrick has expressed his commitment to establishing a “Texas Bitcoin Reserve” as a primary legislative goal for the 2025 session.
