WV Proposes New Bill For Digital Assets And Gold To Secure State Funds
West Virginia Plans To Do Investment In Digital Money
West Virginia State Senator Chris Rose has proposed a new bill called the “Inflation Protection Act of 2025”. This act would allow the state to make some investment in digital assets such as Bitcoin and other precious metals like gold and silver. The goal is to safeguard the state’s money from losing its value due to inflation.
What Is This Bill About?
The bill submitted on 14th Feb, states that West Virginia can invest only up to 10% of its funds in digital assets and precious metals. However, not all digital assets qualify. A digital asset must have a market value of over USD 750 billion to be considered. Currently, Bitcoin is the only digital asset that meets this rule and at the time of writing Bitcoin price is USD 97,564.70
The state can store these investments either:
Why Is This Important?
As inflation occurs when prices go up, and money loses its value. This can make it harder for governments to pay for essential services. Bitcoin and gold are generally seen as “safe” investments as they hold their value over time. By investing in these assets, West Virginia wish to keep its money safe from inflation.
Other States are Doing the Same
West Virginia is not the only state thinking about this idea. Many other states are also looking into digital asset investments:
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Utah: Passed a bill permitting the state to invest in Bitcoin and other digital currencies.
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Kentucky: Introduced a bill to invest 10% of its funds in digital assets such as Bitcoin.
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Michigan: Suggested a plan to create a digital asset reserve, though it does not specify which digital assets will be included.
This indicates that many states are starting to see digital money as a significant investment.
What Could Happen Next?
According to expert analysis from VanEck, US states with pending strategic reserve legislation could create a demand for USD 23 billion worth of Bitcoin. This may:
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Increase Bitcoin’s value
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Encourage more people to invest in digital money
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Change how governments manage their money in the future
News sum-up
West Virginia’s new bill is a significant step toward using digital assets for government investments. If this bill passes, it could help to protect the state’s funds from inflation. As many other states are considering similar strategies, digital money might become a major part of how governments handle their finances in the future.
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