Ohio’s Derek Merrin Proposes HB 703, Bitcoin Reserve Bill

A proposed law in Ohio aims to include Bitcoin in its financial plan. Ohio House Republican Leader Derek Merrin introduced the bill.

Former Waterville Mayor Derek Merrin took to X to announce that House Bill 703, introduced this week, would allow the state treasurer to invest in Bitcoin (BTC) to create an “Ohio Bitcoin Reserve” in the state. treasure. His thought behind introducing the bill was that including BTC in the state’s investment portfolio could help protect against the gradual decline of the purchasing power of the US dollar, thus helping to preserve the value of public funds across generations.

🚨Today I filed for HB 703 to create an Ohio Bitcoin Reserve within the state treasury!

Provides the state treasurer with investment authority and flexibility #Bitcoin

This legislation creates a framework for the Ohio state government to leverage the power of Bitcoin to empower us… pic.twitter.com/hSWas2qeQd

— Derek Merrin (@DerekMerrin) December 17, 2024

If enacted, the proposed legislation would put Ohio on the map for government crypto adoption by giving the treasurer the authority and flexibility to invest in BTC. Advocates such as Cynthia Lummis argue that if BTC is accepted as a form of payment by large businesses and even government agencies in some cases, its inclusion in government reserves will increase a state’s financial strength. Moreover, this could legitimize its position in global finance by encouraging greater institutional adoption of digital assets, according to Matthew Sigel, who heads VanEck’s Digital Assets Research wing.

Ohio had $72.16 billion in public debt in 2022, according to Statista. Most of Ohio’s debt consists of general obligation bonds and special obligation bonds issued to finance infrastructure projects, education and other public projects. As a result, if Ohio can now add BTC to its treasury reserves, the state will likely improve its long-term financial solvency. Over time, such a strategy could brighten Ohio’s fiscal picture, ease pressure to raise taxes or cut services and put the state in a much better position to meet such obligations.