Member of the House of Representatives of South Carolina, Jordan Pace, belonging to the Republican Party, submitted a bill on the creation of a strategic reserve of digital assets.

According to the bill, the state treasury will be able to invest up to 10% of the unused state budget in digital assets, primarily in Bitcoin. If the bill is adopted, the staff will be able to add up to one million bitcoins to the reserve. However, the total volume of crypto acts stored in the state treasury should not exceed 3% of the total investment portfolio of South Carolina.

Investments will receive state funds, including the general fund and the reserve fund for budget stabilization. Locals will also be able to make voluntary public contributions and donations in digital assets. This should be involved in society in the formation of a state reserve and accelerate the spread of bitcoin at the state level.

To protect digital assets, the treasury is recommended to use castodial services with a high level of safety. This includes cold storage methods that are designed to provide protection against cyber attacks, the congressman believes. The treasury should publish reports on digital assets reserves twice a year. All open addresses related to the strategic reserve should also appear on the official staff website so that local residents can check transactions and crypto acts, the bill said.

The author of the bill is confident that Bitcoin investments will help protect state funds from inflation, as well as diversify finances. By storing part of the assets in bitcoins, South Carolina will become a leader in the integration of cryptocurrencies into the US financial sector, Pace believes.

In early March, the Senate of Texas adopted a bill by a majority vote, which will allow you to invest part of the budget funds in bitcoins. Earlier, a draft law on state investments in Bitcoin to combat growing inflation was submitted to the Senate of Florida.