Arizona legislature greenlights nation’s first Bitcoin reserve bill, allowing 10% of state funds to flow into crypto.

Arizona just placed a massive bet on Bitcoin – and the move could rewrite the playbook for how governments handle public funds in the crypto age.

Lawmakers in the Grand Canyon State passed a bombshell bill Monday that would let state treasurers park up to 10% of available funds in Bitcoin, sending the proposal to Governor Katie Hobbs’ desk in what could become a watershed moment for institutional crypto adoption.

“This isn’t just about diversification – it’s about recognizing where the financial system is heading,” said State Senator Wendy Rogers, one of the bill’s architects, in remarks that echoed BTC maximalist talking points. “When the Fed keeps printing, you need assets that can’t be inflated away.”

The Arizona Strategic Bitcoin Reserve Act marks the most aggressive crypto move yet by any U.S. state government. If signed, it would create a mandatory BTC allocation framework – a first-of-its-kind experiment in public finance that’s already drawing side-eye from traditional economists.

Market observers note the timing coincides with growing institutional interest. “We’re seeing states behave like macro hedge funds now,” remarked BlockTower Capital CIO Ari Paul. “After BlackRock’s ETF success, this validates Bitcoin as a reserve asset class.”

The bill’s passage comes as Bitcoin trades at $94,991, with some analysts suggesting such institutional moves could provide long-term price support. Meanwhile, treasury officials in Texas and Florida are reportedly drafting similar legislation – setting the stage for what one lobbyist called “the great state crypto arms race of 2024.”

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Critics warn of volatility risks, but proponents counter that a 10% cap balances innovation with fiscal responsibility. As the crypto community watches Hobbs’ next move, one thing’s clear: Arizona just made the first serious attempt to bridge BTC and public finance – and the reverberations could shake treasuries nationwide.