While the election of Donald Trump had given rise to hope in the United States with regard to Bitcoin State reserves (BTC), the trend seems to be reversed in recent days. After 4 other states, it is indeed the southern Dakota turn to refuse the establishment of a bitcoin reserve.
The southern Dakota in turn rejects the establishment of a bitcoin reserve
South Dakota legislators voted this Monday on a bill concerning the establishment of reserves in Bitcoin. They rejected his examination, believing that reserves of this type were not appropriate for this state of the Center of the United States.
The bill had been published by the Republican representative Logan Manhart. She was considering to allocate 10% of public state funds for bitcoin investmentsin order to diversify his assets.
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But the proposal came up against several local figures, including the investment manager of the southern Dakota, Matt Clark. The latter estimated that Bitcoin was not useful enough ::
“”Bitcoin has no underlying physical use. It does not generate income, unlike goods or other forms of assets.»»
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A “speculative” asset for opponents of the law
Opponents of the law also underlined the instability of cryptocurrencyconsidering it “A volatile and speculative asset ». Matt Clark, however, showed the limits of his understanding of cryptocurrencies, stressing the alleged anonymity of the network:
“”It has the advantage of anonymity for those who need it. It also means that if [du Bitcoin] is stolen, it will not be possible to recover it since it is intraçable. »»
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Logan Manhart confirmed that he would again file a proposal next year. This decision of the southern Dakota is however part of a broader trend : Several states have indeed shown their reluctance to integrate Bitcoin into their reserves in recent weeks.
Although President Donald Trump has promised considerable changes to take into account cryptocurrencies, for the moment they are long overdue. This may be what led to reluctance on the part of certain states.*
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Source: SDPB
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Journalist at Cryptoast since 2017, I have been passionate about the challenges of decentralization, privacy and regulation. I specialized in the economy and traditional finance by analyzing how the news in this sector influence that of cryptocurrencies, thus offering a unique and enlightened perspective to cryptoast readers.
Marine Debellor
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