West Virginia’s BTC Reserve Bill Is ‘Freedom’ From A CBDC, Says State Senator

West Virginia’s Bitcoin reserve bill is making headlines with the latest announcements by State Senator Chris Rose. According to the current announcement, the bill would allow the state treasurer to invest up to 10% of state funds in Bitcoin, stablecoins, precious metals, and cryptocurrency in general. Moreover, this Bitcoin reserve bill claims to offer more sovereignty for the state from the federal government and freedom from the potential central bank digital currencies (CBDC). 

In a recent interview, Chris Rose noted that the currently spreading rumors suggest that the people at the federal bank want to introduce a central bank digital currency. According to his statement, these are rumors, and in reality, people want decentralized currency, which would be initiated with West Virginia’s Bitcoin reserve bill. 

What Is West Virginia’s Bitcoin Reserve Bill?

West Virginia’s Bitcoin reserve bill is considered to be one of the revolutionary movements by the state legislature. At its core, this bill suggests that the state allocate a portion of its treasury assets to cryptocurrency reserves and precious metals. As per recent reports, up to 10% of the public funds in cryptocurrency and precious metals, or digital assets with a $750 million market capitalization or higher value for the last year, are considered for the reserve. However, according to current analysis, the only digital asset with this market cap is Bitcoin, and hence, the state has initiated the Bitcoin reserve. 

Chris Rose has detailed the market cap requirement set by the state. According to his statement, the state decided to set such a market cap to avoid getting trapped in things like meme coins while having an exposure to cryptocurrency. He added that adopting Bitcoin on the state level would offer more sovereignty and freedom for the state. He then added that the same was the reason why he feels that the people want the state government to invest in Bitcoin. “And I think that’s one reason why you see a lot of people who normally buy [Bitcoin] for themselves want to see their state government do the same,” said Chris Rose.

According to Chris Rose, the initial rule of 10% allocation is a good start to get introduced to Bitcoin as it would help reduce the fear of people who are not used to cryptocurrency and also aids the state to get a decent exposure in the field. 

The fear that holds back the Bitcoin reserve bill

In his recent interview, Chris Rose suggests that it is the fear, especially of those who do not understand cryptocurrency, that holds back the Bitcoin reserve bill from moving further. He noted that West Virginia also has people who do not understand cryptocurrency, and the fear these people have is common, holding back the bill. However, he further adds that once these people are familiar with crypto, they would realize it to be a “powerful investment tool and freedom tool.”

However, according to other reports, along with common people, some lawmakers and financial experts have issues with the Bitcoin reserve bill. Due to the asset’s high volatility and inherent risks of the industry, some officials are skeptical about the bill. Even though various state legislatures have initiated the reserve bills in the United States, some have failed to introduce them, while others have scrapped key provisions due to these concerns and fears.