Senator Rose’s bill aims to invest up to 10% of state funds in Bitcoin, stablecoins, and precious metals.
In an interview with Cointelegraph, West Virginia Senator Chris Rose argued that the Bitcoin strategic reserve bill would be a step toward greater state sovereignty from the federal government and protection against the possible introduction of a CBDC.
“You hear these rumors that there are people at the federal government that will want to have a central bank digital currency,” Rose stated. “And people don’t want that. People want decentralized currency. They want freedom.”
The proposal, introduced in February, would allow the state treasury to invest up to 10% of public funds in precious metals such as gold and silver, stablecoins, or any digital asset with a market capitalization of at least $750 billion over the past 12 months. Currently, the only digital asset meeting this requirement is Bitcoin.
Strategic investment for West Virginia
Rose, the bill’s sponsor, explained that the market capitalization requirement was set to enable the state to gain exposure to cryptocurrencies while avoiding being trapped “in any things like memecoins.”
State-level Bitcoin adoption “give us a little more state sovereignty,” Rose added. “And I think that’s one reason why you see a lot of people who normally buy [Bitcoin] for themselves want to see their state government do the same.”
He also emphasized that allocating 10% of state funds would be a “good way to introduce [Bitcoin] to the state” while easing concerns from those unfamiliar with digital assets. “It’s a good way to cap that where they feel comfortable, but also give us at least a decent exposure as well.”
Rose highlighted that one of the obstacles to passing the bill is fear, particularly among those who don’t understand cryptocurrencies. “Just like any other state, we have people who understand it. We also have people that don’t understand it, and people are always afraid of what they don’t know.” He added that “once they understand it, they realize it’s a very powerful investment tool and freedom tool for every one of us to adopt.”
West Virginia Governor Patrick Morrisey, who has envisioned a state economy driven by digital assets and other technologies, will not be an obstacle, according to Rose. Nor will the state treasurer, whom Rose consulted before introducing the proposal.
