Pennsylvania lawmakers have introduced a bill that could make the state a trailblazer in integrating Bitcoin into its financial strategy. If passed, the legislation would allow the state to invest up to 10% of its treasury funds—potentially including the General Fund, Rainy Day Fund, and State Investment Fund—into Bitcoin. This move aims to protect the state’s purchasing power against inflation, which has significantly eroded its economic strength in recent years.
With Pennsylvania’s General Fund holding approximately $9.7 billion, this initiative could result in up to $970 million being allocated to Bitcoin, underscoring the state’s ambitious embrace of digital assets. The legislative memo accompanying the bill emphasized the importance of Bitcoin as a hedge, noting its remarkable appreciation over the past four years—rising from around $22,900 to $89,150, a staggering 289% increase.
“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,” the memo stated. By contrast, traditional dollars held by the state have diminished in value, reflecting the need for innovative financial solutions like Bitcoin.
Introduced by Republican Representatives Mike Cabell and Aaron Kaufer, the bill must clear several legislative hurdles before becoming law, including reviews by the House and Senate, as well as an executive action.
This state-level Bitcoin proposal mirrors broader national discussions about establishing a strategic Bitcoin reserve. The concept gained traction following Donald Trump’s reelection, with the revival of the “Bitcoin Act,” spearheaded by Senator Cynthia Lummis (R-WY). The proposed federal initiative would authorize the U.S. Treasury to purchase up to 1 million BTC over five years, representing nearly 5% of Bitcoin’s total supply. At current prices, this would equate to an $89 billion investment.
Supporters, including Trump and Lummis, envision Bitcoin playing a long-term role in bolstering the U.S. economy. The plan calls for holding the Bitcoin reserve for at least 20 years before reassessing its utility. While the Bitcoin Act has yet to advance beyond its introduction in the Senate, Lummis remains optimistic, claiming the next Congress offers a prime opportunity to push the initiative forward.
Skeptics, however, caution that both Pennsylvania’s and the federal government’s Bitcoin proposals may face resistance from lawmakers wary of the cryptocurrency’s volatility and regulatory challenges. Despite these hurdles, the introduction of such measures signals a growing recognition of Bitcoin’s potential as a financial safeguard and its evolving role in public and institutional investment strategies.