Arizona’s Attempt to Establish a Bitcoin Reserve Fails

Arizona Governor Katie Hobbs vetoed a bill that would have allowed the state treasurer and pension funds to invest up to 10% of their assets in virtual currencies such as Bitcoin.

The governor emphasized that public finances are not the place for “unproven investments,” which she categorized digital currencies as.

“The Arizona state pension system is one of the most stable in the U.S. because it makes prudent and well-founded investments. The pension savings of state residents are not the place to experiment with unproven assets like virtual currencies,” stated Governor Katie Hobbs.

Bill number 1025, approved by the State House of Representatives with a narrow margin (31 to 25), proposed investing seized funds in Bitcoin and creating a state-managed digital asset reserve.

The bill was co-authored by Senator Wendy Rogers and Representative Jeff Weninger, both Republicans.

The governor’s decision drew sharp criticism from the Bitcoin community.

“Impeach Katie Hobbs—she just let Arizona down,” commented Bitcoin Magazine’s CEO David Bailey.

Arizona could have become the first U.S. state to include digital gold in its financial reserves.

Back in early March, U.S. President Donald Trump signed an order to establish a federal SBR based on assets seized by the Treasury.

In states such as Oklahoma, Montana, Pennsylvania, North and South Dakota, and Wyoming, attempts to create a strategic Bitcoin reserve also failed.