Another U.S. State Considers Creating Its Own Bitcoin Reserve

A U.S. state is exploring the possibility of creating a Bitcoin reserve, with one key local official leading the charge.

Andrew Sorrell, Alabama’s state auditor and a long-time cryptocurrency supporter, believes this move could significantly strengthen the state’s financial position and attract new business. Sorrell, who previously served as a state legislator, is a vocal advocate for the potential of digital currencies, claiming that the race to capitalize on crypto is already underway across the country.

In a recent interview, Sorrell emphasized that early adoption of crypto-friendly tax and regulatory policies would position states to benefit most. He also noted that the rise of Bitcoin and Ethereum exchange-traded funds (ETFs) makes investing in these assets as simple as buying traditional stocks, offering an alternative to traditional investments that are struggling to keep up with inflation. In his view, digital assets offer a far more promising future, with Bitcoin alone growing at an average rate of 55% annually over the last 15 years.

Sorrell’s vision for Alabama includes building a Bitcoin reserve akin to the one proposed by former President Donald Trump. He suggests that the state could start accumulating Bitcoin on a monthly basis over the next two years, capitalizing on the current bull market. By doing so, Alabama would not only hedge against potential inflationary risks but also diversify its holdings away from the US dollar, which, according to Sorrell, could lose its status as the global reserve currency.

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While the state has shown a progressive stance on cryptocurrency, efforts to enact comprehensive crypto legislation have been slower than expected. Recently, Alabama created the Blockchain Study Commission, tasked with evaluating the state’s approach to crypto regulation, taxation, and mining. However, a bipartisan bill aimed at protecting digital asset mining from new restrictions failed to pass, highlighting the ongoing challenges in fully integrating digital currencies into state policy.

Kosta Gushterov