Bitcoin adoption is happening fast. Part of that story is undoubtedly Bitcoin reserves. This would mean that countries, or in this case, the states, would hold Bitcoin on their balance sheets.
Sound far-fetched to you?
Well, just a few years ago, you’d be right. But we’re in a new era for crypto adoption, and many states are keenly eyeing Bitcoin.
That’s what we’ll be talking about today.
Let’s explore state Bitcoin adoption in the form of reserves and funds, uncovering what that might mean for the crypto space and you as a holder.
So, why would the states want to hop on the Bitcoin adoption bandwagon?
Well, there are a few key reasons why this might be the case. First, there’s the fact that Bitcoin has a finite supply of 21 million. That means, unlike U.S. dollars, they can’t be devalued by more money printing.
For those spooked by high inflation, this is a huge benefit of Bitcoin. Here are a few more:
There are plenty of other reasons, but this gives you a good idea of the benefits.
That’s the why; now we’ll look at the how.
Let’s start with Texas. There are several state legislators proposing a Bitcoin reserve or special fund. Senator Charles Schwertner introduced a bill* (as mentioned on cointelgraph.com) to establish a state Bitcoin reserve, while Representative Giovanni Capriglione proposed a similar idea in the Texas House.
The proposals aim to create a dedicated fund for holding Bitcoin, which would be separate from the state’s general treasury.
These proposals would establish how they’d both purchase the Bitcoin and safe storage methods, possibly using a multi-signature wallet (learn more through the link). The legislators also proposed some rules as to how this Bitcoin might be used. For example, the state legislature would have oversight and the ability to vote on any transfers or sales.
Oklahoma is another state with big Bitcoin ambitions.
Their bill, proposed by Representative Cody Maynard* (information from bitcoin.com), would allow the state treasurer to invest in Bitcoin as well as other cryptocurrencies.
The treasurer would be able to use funds from several state accounts to make those purchases, giving Oklahoma a bit more flexibility to invest without creating a dedicated fund or reserve.
Plenty of other states are making proposals too.
So far, we’ve seen Pennsylvania, New Hampshire, North Dakota, Florida, and Ohio propose bills related to Bitcoin adoption. These range from state Bitcoin funds to allowing tax payments in Bitcoin. No matter how you look at it, the future of Bitcoin adoption in the U.S. is bright.
The best part? It might be the federal government that leads the way.
While the states are certainly gaining some attention, there’s no doubt that all eyes are on the federal government.
We already took a look at this topic in a blog all about the possibility of a Bitcoin Strategic Reserve, so check that out if you want the full scoop. In short, there have been ongoing discussions about the possibility of a reserve, with several ideas for how to get one started.
The idea has gained traction among some lawmakers and financial experts who see Bitcoin as a potential hedge against inflation and economic uncertainty.
If this happens, it could unlock the door to all kinds of new possibilities.
While only a few states are on board now, if a U.S. Strategic Reserve happens, it could start a domino effect of crypto adoption.
So, where do Bitcoin ATMs fit into this picture?
Well, as a Bitcoin ATM operator, Bitcoin Depot's mission is simple: bring Bitcoin to the masses. That means Bitcoin adoption is our key driving force.
While we might not have a direct connection to a Bitcoin reserve, we sure do like the idea of more and more states warming up to the idea of Bitcoin. This could mean all kinds of things for the Bitcoin ATM industry:
We’re thrilled that Bitcoin is big news these days. Starting out in 2016, it was a much different environment. But we’ve stayed true to the crypto industry, and the future has never looked better.
For you as a customer and holder, state Bitcoin adoption could mean a few things:
Of course, those are all just possibilities. Moreover, as it stands now, the idea of a Bitcoin reserve for either a state or the federal government is still just in the planning stages.
Are reserves and funds the key to Bitcoin adoption?
They sure don’t hurt. As more and more states propose Bitcoin and crypto-related bills, it’s safe to say we’re in a new era.
To stay ahead of the curve, get to your local Bitcoin ATM.
Here at Bitcoin Depot, we operate the largest Bitcoin ATM network in the U.S., Canada, and Puerto Rico, with over 8,400 locations (as of January 2025).
Start your own crypto journey by finding your closest Bitcoin ATM.
*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.