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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | November 12, 2024 01:27 PM |
|---|---|
| From: | Representative Mike Cabell |
| To: | All House members |
| Subject: | Strategic Bitcoin Reserve |
| I am introducing legislation to provide Pennsylvania’s Treasurer and pension funds with additional tools to protect against the inflation that has eroded the purchasing power of our state and its retirees. This legislation would permit the Treasurer to invest up to 10 percent of the State General Fund, the Rainy Day Fund, and the State Investment Fund in Bitcoin, a digital asset increasingly recognized as a hedge against inflation. In recent years, many financial institutions and sovereign governments, including the United States, have invested in Bitcoin to shield their portfolios from economic volatility. The world’s largest investment firms—such as BlackRock, Fidelity, and Franklin Templeton—now offer Bitcoin options, and states like Wisconsin have also made strategic investments in digital assets. Studies suggest that holding a small percentage of reserves in Bitcoin can contribute to a well-diversified and resilient portfolio. Inflation has impacted Pennsylvania’s purchasing power by nearly 20 percent over the past 4 years, and we need solutions that can offer stability in uncertain economic times. Bitcoin, which has appreciated significantly over the years, can help Pennsylvania keep pace with inflation and economic change. I hope you will consider co-sponsoring this important legislation to support our state’s financial stability and the long-term economic security of its residents. |
Introduced as HB2664
Memo Updated: November 12, 2024 01:28 PM