Arizona Governor Katie Hobbs has rejected a proposal to invest state funds in Bitcoin, citing untested investment risks and bringing an end to the state’s push to create a cryptocurrency reserve.
The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
It was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto.
Bitcoin uses cryptography to secure and verify transactions, and its supply is capped at 21 million coins.
Bitcoin's value has fluctuated over time due to market demand and other factors.
Opposition to Senate Bill 1025
Senate Bill 1025 aimed to create a digital assets reserve managed by the state, using seized funds to invest in ‘Bitcoin (BTC)’. The legislation passed the state House in a narrow 31-25 vote, but Governor Katie Hobbs swiftly vetoed it. In her statement, Hobbs expressed concerns about the risks associated with untested investments like virtual currency.
Consequences of the Veto
The veto ends a push that could have made Arizona the first state to set up a ‘cryptocurrency reserve’ . It also means that the state will not be investing in Bitcoin this year. While other states may consider following suit, the U.S. Treasury Department has yet to establish a similar reserve.
Background on Senate Bill 1025
The bill proposed using seized funds to invest in BTC and create a digital assets reserve managed by the state. The legislation was met with opposition from some lawmakers, who expressed concerns about the risks associated with investing in ‘virtual currency‘ . Despite this, the bill passed the House and reached Hobbs’ desk before being vetoed.
