New Hampshire Legislature Gives Green Light to Bitcoin Reserves Act
New Hampshire Takes the Lead in Crypto Adoption
New Hampshire just made history as the first U.S. state to authorize the acquisition of Bitcoin as part of its financial reserves. Here's what you need to know about this groundbreaking move:
The First Bite of the Apple
Governor Kelly Ayotte signed bill HB 302 into law on Tuesday, paving the way for New Hampshire to invest in cryptocurrencies and precious metals. The Granite State is at the forefront of innovation, setting a precedent for other states considering similar investments in digital assets.
New Hampshire Governor Kelly Ayotte signs bill HB 302
Hedge Against Inflation
According to Representative Keith Ammon, who sponsored the bill, this move is an attempt to hedge against inflation. If the federal government managed the dollar more effectively, we wouldn't be in this position, he said. With inflation nibbling away at our lunch, this is one way our state can protect itself in the future.
New Hampshire's treasury's estimates indicate that if the state treasurer chooses to invest all 5% or around $181 million in Bitcoin, it could acquire approximately 1,194 BTC based on the current price.
Diving into the Digital Deep End
The bill allows the treasurer to hold Bitcoin through secure custody, via a qualified custodian, or by means of an exchange-traded product issued by a regulated investment company. Given the state's risk-averse nature, it's likely they'll start with a Bitcoin ETF.
Following in New Hampshire's Footsteps
While New Hampshire leads the way, other states are hot on its heels. Yet, not every state has managed to get their digital asset reserve off the ground — Arizona's governor recently vetoed a similar bill.
Meanwhile, President Trump issued an executive order in March, setting up a national strategic Bitcoin reserve and a separate digital assets stockpile for other cryptocurrencies.
Digital Gold Rush?
If successful, this initiative could spark a gold rush in New Hampshire, attracting investment and talent, and propelling the state forward as a hub for cryptocurrency-related activities.
The implications of this move extend beyond New Hampshire, potentially influencing further discussions at a federal level and prompting other states to consider similar investments in digital assets.
Reporting by André Beganski | Edited by Andrew Hayward*
By embracing Bitcoin, New Hampshire is not just making a bold financial move; it's also positioning itself at the forefront of a new era in finance and technology.
Footnotes:
- New Hampshire has become the first state to legally acquire Bitcoin as part of its financial reserves, setting a precedent for other states to adopt cryptocurrencies.
- Governor Kelly Ayotte's signing of bill HB 302 allowed the state to invest in cryptocurrencies and precious metals, including bitcoin, ethereum, and other digital assets.
- Representative Keith Ammon believes this move is an attempt to hedge against inflation, with New Hampshire's treasury estimating approximately 1,194 BTC could be acquired if all 5% ofstate's reserves were invested in Bitcoin.
- The state may use secure custody via a qualified custodian or an exchange-traded product issued by a regulated investment company to hold Bitcoin, potentially starting with a Bitcoin ETF.
- With President Trump's executive order and other states following New Hampshire's lead, a national strategic Bitcoin reserve and increased investment in digital assets could propel cryptocurrency-related activities and influence federal discussions on digital assets.
