Nikolas Sargeant
New Mexico has introduced a bold move to enhance its local economy by proposing the allocation of 5% of its public funds into Bitcoin. Senate Bill 57 (SB57), which was recently welcomed by the state legislature, aims to establish a strategic Bitcoin reserve and is spearheaded by Senator Ant Thornton. This initiative follows the growing trend across the U.S. with more than 15 states pushing for similar cryptocurrency-backed economic plans.
The proposed "Strategic Bitcoin Reserve Act" seeks to diversify New Mexico's public funds by adding Bitcoin as a new investment avenue. The long-term goal is for the state to benefit from Bitcoin’s price appreciation while creating an alternative treasury. If passed, the state would also implement stringent oversight, with the State Investment Officer managing the reserve under the watchful eye of the State Investment Council.
One of the bill’s key proposals includes safeguarding the Bitcoin in cold storage, ensuring its security and preventing potential market volatility. By focusing on this innovative financial asset, Senator Thornton hopes New Mexico will not only enhance its investment portfolio but also attract crypto companies, offering a much-needed boost to the state’s economy.
Bitcoin Reserves: A Growing Global Trend
This move comes amid similar efforts in other U.S. states like Indiana and Utah, which are exploring Bitcoin reserves as a way to benefit from the growing crypto industry. With states like New Mexico leading the way, this trend could pave the path for more mainstream adoption of digital assets in the U.S. economy.
El Salvador made the world’s first strategic Bitcoin reserve of any government. Recently, Trump's Crypto Czar has renewed the push to open one at the federal level. Arizona, Illinois, Ohio, and The Czech Republic are just some of the governments considering starting a strategic Bitcoin reserve.
