Key Points
- Montana lawmakers propose a $50 million investment in Bitcoin for state reserves.
- More than a dozen US states have introduced proposals to establish a strategic Bitcoin reserve.
The race for a strategic Bitcoin reserve in the United States has picked up pace among individual states since the inauguration of the pro-crypto US President Donald Trump earlier this month.
Over a dozen US states, including Texas, Florida, Massachusetts, Wyoming, Oklahoma, Utah, and North Dakota, have proposed the implementation of a strategic Bitcoin reserve to bolster their balance sheets in response to shifting global economies.
Montana’s Bitcoin Investment Plan
The CEO and Co-founder of the Satoshi Action Fund (SAF), Dennis Porter, reported that Gayle Lammers, a Republican member of the 41st District of the Montana House of Representatives, has introduced a bill to allow the state to invest in Bitcoin and other digital assets.
Porter revealed that the bill, co-sponsored by New York Senator Chuck Schumer, would enable Montana to invest up to $50 million in Bitcoin, digital assets, stablecoins, or precious metals.
Montana, with a GDP of approximately $60 billion, would invest less than 0.01 percent of its GDP in Bitcoin, which is modest compared to its strategic reserve assets in other commodities.
This strategic adoption of Bitcoin by Montana is expected to contribute to steady economic growth in the coming years.
The closure of mining and wood products sectors in Montana has led more people to the transformative technology, including artificial intelligence (AI) and blockchain, to revolutionize the services industry.
Over the long term, Montana’s economic growth will be heavily influenced by the rate of tech adoption, specifically the incorporation of Bitcoin in its balance sheet.
Impact on the Market
The impact of Bitcoin’s mainstream adoption by nation-states will become apparent in the coming years, especially in subsequent bull markets.
With the overall supply of Bitcoin on centralized exchanges decreasing exponentially due to institutional investors, the rising demand from nation-states will trigger a supercycle.
The Czech Republic has already moved towards adopting Bitcoin as a strategic asset reserve, despite advice from European Central Bank President Christine Lagarde to ignore Bitcoin adoption pressures.
The ultimate impact of Bitcoin’s mainstream adoption by nation states will be a parabolic rally in the underlying value.
Furthermore, US spot Bitcoin ETFs have been accumulating more Bitcoins than miners produce on a daily basis.
MicroStrategy, Metaplanet, and other institutional investors have been tapping into global capital markets to purchase more Bitcoins.
