Illinois has joined the growing number of U.S. states exploring the potential of cryptocurrency reserves as part of their financial strategies.
State Representative John Cabello has introduced House Bill 1844 (HB1844), which seeks to create a Strategic Bitcoin Reserve Fund within the state treasury.
If approved, the Illinois State Treasurer would manage the fund, ensuring that all Bitcoin deposits remain untouched for a minimum of five years before the state can transfer, sell, allocate, or convert them into another cryptocurrency.
This push for state-level Bitcoin reserves has gained significant momentum since President Donald Trump’s return to the White House. At least six states have introduced or advanced similar bills just in January alone. Among them, Texas Senator Charles Schwertner has proposed Senate Bill 778 (SB 778) to establish a Strategic Bitcoin Reserve and so position Texas as a leader in economic innovation. Schwertner’s bill underscores Bitcoin’s value as a strategic asset with the potential to bolster the state’s financial resilience.
In Illinois, the proposed bill allows the state to receive Bitcoin donations, grants, and gifts from residents and government entities, making it one of the first states to consider voluntary Bitcoin contributions as part of its public finance strategy. The bill also mandates regular audits and biennial reports to ensure transparency, detailing the fund’s total Bitcoin holdings, their U.S. dollar value, and any security risks encountered.
To safeguard the fund, HB1844 requires all Bitcoin to be stored in cold storage, a highly secure, offline method designed to prevent unauthorized access. Additionally, the bill empowers the State Treasurer to implement regulations for managing the fund, including secure storage protocols, transaction oversight, and reporting standards.
Meanwhile, this trend of State-level Bitcoin reserves builds on the push for a Bitcoin reserve at the national level. Senator Cynthia Lummis, a vocal advocate for Bitcoin in U.S. Congress, has long championed Bitcoin as a hedge against inflation and economic uncertainty. On January 30, she announced plans to hold public hearings on the concept as institutional adoption of Bitcoin-based reserves gains traction across the U.S. and globally.
Internationally, Bitcoin’s potential in national reserves is also being explored. Aleš Michl, the Governor of the Czech National Bank, revealed that Czechia could become the first Western European country to incorporate Bitcoin into its national reserves. He proposed allocating up to 5% of the CNB’s €140 billion ($145.6 billion) reserves to Bitcoin, marking a significant step toward embracing cryptocurrency on the national stage.
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