Maryland Joins 17 States Betting on Bitcoin for Financial Security

• Maryland is moving forward with a Bitcoin reserve proposal to diversify its financial portfolio and hedge against fiat inflation.
• The bill, introduced by State Representative Caylin Young, would establish a BTC Strategic Reserve Fund managed by the state treasurer.
• Maryland plans to use funds from gambling violations to invest in Bitcoin, while also accepting BTC donations from residents and entities.

Maryland is moving to establish a Bitcoin reserve, joining 17 states considering similar measures. State Representative Caylin Young introduced MD HB1389 on February 7, proposing BTC as a hedge against fiat inflation. The bill aims to diversify Maryland’s financial portfolio while integrating cryptocurrency into state operations.

Maryland Proposes Bitcoin Reserve Fund for Stability

The legislation would create a BTC Strategic Reserve Fund, managed by the state treasurer. This fund would act as a reserve asset to support financial stability. It would ensure secure Bitcoin acquisition and storage while maintaining transparency.

Maryland plans to use funds from gambling violations to invest in BTC. The bill also permits residents and governmental entities to donate BTC to the reserve. Additionally, it mandates that state agencies accept cryptocurrency for taxes, fees, and fines, with payees covering transaction fees.

The proposal outlines a structured BTC investment plan to mitigate financial risks. The strategy includes regulatory oversight to enhance security and accountability. If passed, Maryland would take a significant step in state-level cryptocurrency adoption.

Lawmakers See BTC as Inflation Hedge

Several states are advancing similar Bitcoin reserve strategies. Utah’s House Bill 230 passed through the House on February 6 and is now in the Senate. The bill permits the state treasurer to allocate up to 5% of select public funds into BTC and other assets.

Kentucky introduced KY HB376 on February 6, proposing up to 10% of excess state reserves in BTC. This move aligns with a broader trend of state governments seeking financial diversification. Lawmakers believe BTC offers long-term value despite market volatility.

The number of states pursuing BTC reserves now stands at 17. Proponents argue digital assets could serve as an inflation hedge. Policymakers are weighing regulatory concerns while exploring potential benefits for state economies.

Lummis Proposes U.S. to Hold One Million BTC

Senator Cynthia Lummis is advancing a federal BTC reserve proposal. Her bill seeks to position the U.S. as a major Bitcoin holder and accumulate 1 million Bitcoins over five years using seized assets and financial reallocations.

The proposal includes repurposing 198,100 BTC from asset forfeitures. The remaining 801,900 Bitcoin would come from emergency measures and gold reserve reallocations. Supporters believe Bitcoin could strengthen national financial security and reduce debt.

Meanwhile, the European Central Bank maintains a cautious stance on Bitcoin reserves. ECB President Christine Lagarde opposes BTC integration into EU central bank reserves. Global adoption trends continue, with El Salvador and Bhutan holding BTC while Germany, Poland, and Hong Kong explore similar measures.