Michigan is taking a big leap into the world of cryptocurrency. A new bill proposes creating a state-level Bitcoin reserve, making it one of many US states exploring this strategy.
The Proposal: HB 4087
Representatives Bryan Posthumus and Ron Robinson introduced HB 4087, which would amend the state’s budget act to allow for a Bitcoin reserve. The money would come from the state’s general and economic stabilization funds. This isn’t a completely new idea; around twenty other states are considering similar legislation.
Following Texas’ Lead
Representative Posthumus publicly championed the idea, even urging Michigan to follow Texas’ lead in crypto policy. He even mentioned it on X (formerly Twitter)! Interestingly, a similar bill was introduced in Texas just a day earlier.
Key Details of the Bill
The bill allows the state treasurer to invest up to 10% of the relevant funds in Bitcoin. There are also provisions for lending out the Bitcoin, but only if it doesn’t increase the state’s financial risk. The Bitcoin would be held securely, either through specialized custodians or exchange-traded products. This shows a growing belief in the potential of digital assets as a strategic investment. Michigan’s state pension fund already invests in Bitcoin and Ethereum through ETFs, showing existing interest in crypto.
Beyond Bitcoin: MichCoin?
Posthumus also suggested creating a state-backed stablecoin called “MichCoin.” This would be pegged to Michigan’s gold and silver reserves, offering another way to use state assets in the blockchain space. He envisions MichCoin as a potentially powerful financial tool for the state.
The Bigger Picture
If passed, Michigan’s bill would put it alongside other states exploring crypto investments. While many states are considering similar moves, Michigan’s adoption could influence others to follow suit.
