Source: Cointelegraph Original: "{title}"
The Bitcoin Strategic Reserve Bill in West Virginia will free the state from federal control and avoid potential central bank digital currencies (CBDCs), state Senator Chris Rose said in an exclusive interview with Cointelegraph.
Rose stated, "You've heard the rumors that some in the federal government want to launch a central bank digital currency. But people don't want that. People want decentralized currency. They want freedom."
The bill was introduced in February and aims to allow the state treasury to invest up to 10% of public funds in precious metals like gold and silver, stablecoins, or any digital asset that has reached a market capitalization of $750 million or more in the past 12 months. Currently, the only digital asset that meets this market cap requirement is Bitcoin.
West Virginia State Senator Chris Rose. Source: Cointelegraph
Rose, who is the bill's sponsor, explained that they decided to set a market cap requirement to allow the state government to access cryptocurrency while avoiding "things like meme coins."
He added that adopting Bitcoin as an investment tool for the state government would "give us more state sovereignty." "I think that's also why you see many people who typically buy Bitcoin for themselves wanting their state government to do the same."
He also mentioned that allocating 10% of state funds to Bitcoin is a "great way to introduce Bitcoin into the state," while alleviating fears among those who do not understand digital assets. "It's a good way to make them feel comfortable, but it also gives us at least some exposure."
Bitcoin: A "very powerful" investment and freedom tool
Rose noted that one obstacle to passing the bill is fear, especially among those who do not understand cryptocurrency. "Like any other state, we have people who understand it. We also have people who don't understand it, and people are always afraid of what they don't understand."
He added, "Once they understand Bitcoin, they will realize it is a very powerful investment tool and a freedom tool that each of us can adopt."
Excerpt from the West Virginia Bitcoin Reserve Bill Source: West Virginia Legislature
West Virginia Governor Patrick Morrisey has envisioned a future state economy driven by cryptocurrency and other technologies, and Rose stated that he would not be an obstacle to this bill. Additionally, Rose had communicated with the state treasurer before submitting the bill, and the treasurer would not oppose it.
However, according to West Virginia media WVNews, some lawmakers and financial experts remain skeptical. Due to Bitcoin's volatility and price fluctuations, investing state funds could lead to financial instability, making it a controversial choice for state government investment.
Although Bitcoin strategic reserve bills have emerged in several state legislatures across the U.S., some bills have failed to pass or have had key provisions removed, including in some traditionally conservative states.
According to Bitcoin Laws, there are currently 47 Bitcoin strategic reserve bills proposed in 26 states. However, in most states, these bills are still in the proposal or committee review stage, with only Arizona, Oklahoma, and Texas making substantial progress.
Rose clarified that the 10% of state funds allocated to precious metals, stablecoins, or Bitcoin will come from two main areas.
"These funds will come from pension funds and resource tax funds," Rose stated. "They can convert part of the ETF funds into these assets. We want to distinguish this from the daily operating petty cash fund, which is mainly used to pay the state's daily bills. Therefore, we want to use it for our long-term assets."
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