Catenaa, Sunday, February 16, 2025 – Maryland has joined a growing number of U.S. states considering Bitcoin as part of their financial strategy.
State Representative Caylin Young introduced legislation on February 7 to establish a Bitcoin reserve, making Maryland the 17th state to propose such a measure.
The bill, MD HB1389, aims to diversify Maryland’s investment portfolio by holding Bitcoin as a hedge against fiat currency inflation.
If enacted, it would create a Bitcoin Strategic Reserve Fund, managed by the state treasurer.
The legislation allows Maryland to invest in Bitcoin using funds obtained from gambling violation enforcement and accept Bitcoin donations from governmental bodies and residents.
Additionally, the proposal mandates that state agencies accept cryptocurrency for taxes, fees, and fines, with payees covering transaction fees. It also outlines a structured framework for purchasing and storing Bitcoin, emphasizing security and transparency.
Maryland follows the lead of other states such as Arizona, Alabama, and Florida in considering Bitcoin reserves.
Utah’s House Bill 230, which permits the state treasurer to allocate up to 5% of certain public funds into Bitcoin, recently passed the House. Similarly, Kentucky’s KY HB376, introduced on Feb. 6, authorizes up to 10% of excess state reserves to be invested in Bitcoin and other digital assets.
On a national scale, Senator Cynthia Lummis is advancing a Bitcoin reserve bill seeking to position the US as a major Bitcoin holder.
The proposal aims to accumulate 1 million Bitcoin over five years, partially funded by repurposing 198,100 Bitcoin seized from asset forfeitures.
While US states continue to explore Bitcoin reserves, European policymakers remain skeptical. European Central Bank President Christine Lagarde reaffirmed that Bitcoin will not be included in EU central bank reserves due to concerns over security and liquidity.
Globally, El Salvador and Bhutan have already integrated Bitcoin into their reserves, while Germany, Poland, and Hong Kong are considering similar strategies.
As more states evaluate Bitcoin’s role in public finance, its impact on traditional financial systems remains a key topic of discussion.
