Alabama State Auditor Andrew Sorrell proposed the creation of a Strategic Bitcoin Reserve for that jurisdiction. Sorrell, one of the longest-standing Cryptocurrency advocates in Alabama politics, believes increased state investment in the technology will attract business and investment to the state.
“Alabama would position itself as a cryptocurrency-friendly state. The states that adopt these new technologies will benefit the most. Cryptocurrencies are here to stay. “Almost 500 million people in the world own these assets,” said Sorrell to the local press.
As the politician sees it, the discussion about the success of the cryptocurrencies It’s over. “Now, the competition is to see which states will take advantage of it. The first to create a favorable fiscal and regulatory framework will attract business and investment,” he emphasized.
“Diversifying our investments away from dollar assets is crucial. What would happen if the dollar lost its status as the world’s reserve currency? Or if inflation skyrocketed to 8% again? The value of bitcoin is not affected by the US dollar, and could even benefit from its decline. “This would strengthen our balance sheet and could serve as collateral for future debt,” he said.
With what Sorrell said, Alabama joins Florida and Pennsylvaniastates that have also expressed interest in establishing their own treasuries of bitcoinas reported by CriptoNoticias. Interest in BTC strategic reserves has increased significantly since the election of Donald Trumpwho promised to create a reserve similar at the federal level.
“We can model the Alabama Bitcoin Reserve after the Federal Strategic Bitcoin Reserve that Donald Trump promised to create during his presidential campaign,” Sorrell said. And he recalled that the United States government “already has 207,189 bitcoin, obtained through seizures, valued at USD 20 billion and representing more than 1% of the global bitcoin supply.”
“The state should dollar-cost average over two years. With BTC recently surpassing $100,000, buying into a bull market is not ideal. A smarter strategy would be to make monthly purchases for two years to balance the entry price,” he suggested.
Although Sorrell fully supports the creation of a strategic bitcoin reserve, he advocates a gradual approach to investments, dismissing volatile short-term market fluctuations to focus on long-term sustainable benefits. Sorrell also stressed that this fund would only be mobilized in the event of a catastrophe that seriously threatened the stability of the state.
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