Illinois is positioning itself to be the first U.S. state to incorporate Bitcoin into its fiscal framework, as it edges closer to creating a Bitcoin Reserve. This initiative is encapsulated in the Strategic BTC Reserve Act, introduced by State Representative John Cabello and forwarded to the Rules Committee on January 29, 2025. If enacted, Illinois would lead the charge in integrating cryptocurrency at the state policy level.
Under House Bill 1844, Illinois proposes that the State Treasurer may receive Bitcoin through gifts, grants, and donations from both residents and governmental bodies for deposit into a dedicated fund.
The bill empowers the Treasurer to manage the fund actively, with options to transfer, sell, or convert the Bitcoin holdings into other cryptocurrencies. Illinois is not alone in this endeavor; Texas has also submitted a proposal to create a strategic Bitcoin reserve. This legislation aims to facilitate Bitcoin payments for taxes, fees, and donations, maintaining the BTC holdings in reserve for a minimum of five years.
“A strategic Bitcoin reserve, investing in Bitcoin, would be a win-win for the state,” remarked Republican State Representative Giovanni Capriglione. Although anticipated, a Bitcoin Reserve did not feature in former President Trump's agenda despite early speculation. U.S. Senator and Bitcoin advocate Cynthia Lummis continues to champion for a national Strategic BTC Reserve.
Globally, countries like Czechia and Switzerland are contemplating similar strategies. The Governor of the Czech National Bank, Aleš Michl, has proposed allocating 5% of the country's $145 billion reserve to Bitcoin as part of its diversification efforts. In Switzerland, the Swiss National Bank faces mounting calls to include Bitcoin within its foreign currency reserves. An initiative requiring 100,000 signatures by mid-2026 could trigger a public vote on the matter.
Furthermore, Sarah Knafo, a European Member of Parliament from France, has articulated robust support for a strategic national Bitcoin reserve, opposing the European Union's initiative for a digital euro.