Alabama Should Establish Bitcoin Reserve, State Auditor Says
Alabama State Auditor Andrew Sorrell confirmed the establishment of a state bitcoin reserve in an interview with a local publication.
Many benefits of crypto
Sorrell is a former state legislator and long-time proponent of cryptocurrency. He told 1819 news that adopting cryptocurrency would attract business to the state and boost the state's financial stability.
“Crypto is here to stay,” Sorrell said, “and the battle has begun over which regions will benefit.” in addition –
“States that are the first to adopt a crypto-friendly tax and regulatory framework will attract business and investment.”
The introduction of Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) in the United States will allow the state to easily buy shares in those cryptocurrencies. According to Sorrell, cryptocurrency represents better value:
“He [cryptocurrency] It is also the fastest growing asset class (55% per year on average for the last 15 years). […] Investing in Treasuries and bonds has its place, but earning a 4% yield, even with inflation of 2.7%, is easily breaking even.
Sorrell said Alabama's bitcoin reserve should be modeled after the federal BTC reserve promised by President-elect Donald Trump. Since BTC is in a bull market, Sorrell suggests building up the reserve with monthly purchases over two years. It would be prudent to disengage from the US dollar:
“What will happen if the dollar ceases to be the world's reserve currency? What would happen if inflation returned to 8%, as it was in the post-pandemic period? The value of bitcoin is not affected by what happens to the US dollar.”
Related: Wyoming stablecoin could launch Q1 2025 — Gov. Mark Gordon
Alabama is making slow progress on crypto.
Alabama is home to many pro-crime politicians at the state and federal level. U.S. Senator Tommy Tuberville is perhaps the most active pro-crito federal lawmaker.
Source: 1819 news
The state passed an act in May to create the Alabama Blockchain Study Commission. After the commission reports to the legislature in 2026, it will study and resolve crypto regulation, taxation, mining and other issues.
A bipartisan bill that would have barred the state from restricting the storage or mining of digital assets or levying additional taxes on digital assets and “exempting digital asset mining, staking, and cross-linking from classification as securities or money transmission” failed to pass. year.
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