Michigan has introduced House Bill 4087, which would allow the state treasurer to allocate up to 10% of Michigan’s general and economic stabilization funds into cryptocurrencies. The move aligns with a broader U.S. trend where states are increasingly considering Bitcoin as a strategic reserve asset.
Why Michigan Is Investing in Crypto
Key Highlights:
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Diversification of State Reserves:
Key Highlights:- Lawmakers believe Bitcoin and crypto investments could hedge against inflation and generate higher returns than traditional assets.
- Could reduce Michigan’s reliance on U.S. Treasury bonds and fiat-based reserves.
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Trend of U.S. States Embracing Bitcoin:
Key Highlights:- Michigan follows states like Texas, North Carolina, Pennsylvania, and Ohio, which have introduced similar Bitcoin reserve proposals.
- With Donald Trump’s pro-crypto administration, state-level support for Bitcoin continues to accelerate.
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Crypto Lending for Additional Revenue:
Key Highlights:- The bill allows the state to loan out cryptocurrencies, potentially generating passive income through lending protocols.
- Could increase Michigan’s financial flexibility without adding extra risk.
A Growing National Trend
With over 20 U.S. states now exploring Bitcoin reserve strategies, this shift could legitimize crypto as a long-term financial asset for governments. If successful, Michigan’s move could inspire other states to follow suit, reinforcing Bitcoin’s role as a hedge against economic instability.
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