South Carolina Bill Proposes Bitcoin as State Reserve Asset

States’ Uneven Embrace of Bitcoin

The concept of incorporating Bitcoin into a state’s public finance strategy is not a new one. In recent years, numerous states in the United States have explored the viability of adding Bitcoin to their reserves. One such example is South Carolina, where a proposed bill aims to authorize the state treasurer to purchase and hold Bitcoin as a strategic reserve within key state-managed funds.

The Strategic Digital Assets Reserve Act

Introduced by state Rep. Jordan Pace, the "Strategic Digital Assets Reserve Act" proposes that the state treasurer be allowed to allocate up to 10% of certain public funds into digital assets, starting with Bitcoin. The bill outlines a secure framework for custody, mandates regular public audits, and allows for voluntary BTC donations from residents.

Key Provisions of the Bill

The bill’s key provisions include:

• Authorizing the state treasurer to purchase and hold Bitcoin as a strategic reserve within key state-managed funds
• Outlining a secure framework for custody, including cold storage and qualified custodians
• Mandating regular public audits to ensure the soundness of the state’s digital asset holdings
• Allowing for voluntary BTC donations from residents
• Setting a maximum cap of one million BTC on the state’s digital asset holdings
• Expiring on September 1, 2035, unless renewed

A Wider Nationwide Trend

South Carolina’s proposed legislation is part of a wider nationwide trend of states exploring the viability of adding Bitcoin to their reserves. Other states, such as Arizona, Texas, Oklahoma, and Kentucky, have also introduced similar bills or legislation.

States’ Differing Opinions on Bitcoin

While some states, such as South Carolina, are moving forward with introducing Bitcoin into their public finance strategy, others, like Wyoming, have seen their proposals collapse in committee. Montana, North Dakota, South Dakota, and Pennsylvania have also abandoned similar bills.

Conclusion

The incorporation of Bitcoin into a state’s public finance strategy is a complex and multifaceted issue, with varying opinions and approaches across different states. While some states are moving forward with introducing Bitcoin into their reserves, others are more cautious or have abandoned similar proposals. As the debate surrounding the use of Bitcoin in public finance continues to evolve, it remains to be seen which approach will ultimately prevail.

FAQs

Q: What is the purpose of the Strategic Digital Assets Reserve Act?
A: The bill aims to authorize the state treasurer to purchase and hold Bitcoin as a strategic reserve within key state-managed funds.

Q: What are the key provisions of the bill?
A: The bill outlines a secure framework for custody, mandates regular public audits, and allows for voluntary BTC donations from residents, among other provisions.

Q: Which states have introduced similar legislation?
A: Arizona, Texas, Oklahoma, and Kentucky have also introduced similar bills or legislation.

Q: What is the current status of the bill?
A: The bill is currently pending in the state legislature.

Q: What is the maximum cap on the state’s digital asset holdings?
A: The bill sets a maximum cap of one million BTC on the state’s digital asset holdings.

Q: When does the bill expire?
A: The bill expires on September 1, 2035, unless renewed.