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Central Banks and CBDCs

Utah prepares to "Make ₿ Gold Again"

Alex Bogun

Alex Bogun

— 5 min read
Utah prepares to "Make ₿ Gold Again"
Make Bitcoin Gold Again

With each passing year, cryptocurrencies are becoming more mainstream, and now we’re witnessing new experiments that could shake up the entire financial system. In recent months, two U.S. states (Utah and Montana) have taken steps that could become game-changers for their local economies and, potentially, the world. These states are gearing up to integrate Bitcoin as a strategic reserve asset, essentially creating their own version of a “gold standard” to hedge against inflation and diversify financial holdings. As the global community closely watches the U.S. for any signs of regulatory shifts in the crypto space, state-level initiatives like these might just be the catalyst for broader adoption.

Utah has taken the lead in this arena, pushing forward a bill to establish a Bitcoin reserve. According to HB230, set for review in May 2025, the state plans to allocate up to 5% of its budget into “qualified digital assets,” with Bitcoin being a prime candidate. This move reflects the state’s ambition to safeguard its financial interests, leverage crypto for economic stability, and build a reserve fund resilient to inflationary risks. Naturally, such a bold initiative comes with its share of controversy. Legal and political roadblocks are likely, especially given the federal government’s murky stance on cryptocurrency regulation.

Not to be outdone, Montana also drafted its own proposal – HB429, known as the “Inflation Protection Act of 2025.” This bill aimed to allocate up to $50 million from the state’s general fund into a dedicated account for alternative assets, with a sharp focus on cryptocurrencies and Bitcoin taking center stage. The legislation required that only digital assets with a market capitalization exceeding $750 billion would be eligible for state reserves – making Bitcoin, at the time, the only viable candidate.

However, HB429 ultimately failed to pass in the Montana House, as lawmakers raised significant concerns about the risks of exposing taxpayer funds to the notorious volatility of cryptocurrencies. Critics argued that the bill’s approach was overly speculative, potentially jeopardizing the state’s financial stability. This rejection starkly contrasts with Utah’s advancing efforts and underscores the diverse political climates and risk appetites across the states. Montana’s setback serves as a cautionary tale, emphasizing the need for robust regulatory frameworks and prudent risk management if states are to integrate digital assets into their public reserve strategies.

Of course, these moves haven’t been without pushback. The regulatory landscape remains murky, with major federal entities such as the SEC and the Federal Reserve yet to fully recognize cryptocurrencies as legitimate financial instruments. This creates a gray area for states looking to incorporate digital assets into their financial strategies. Moreover, Bitcoin’s notorious volatility raises concerns about its suitability as a reserve asset, potentially clashing with existing financial regulations and risk management standards.

For Utah and some other states, however, Bitcoin represents more than just an alternative to gold – it’s a bet on the future of finance and an opportunity to strengthen their economic positions through asset diversification. History offers some intriguing parallels: Strategy (former MicroStrategy)’s aggressive Bitcoin accumulation turned it into a market force, proving that crypto can serve as a corporate treasury asset rather than just a speculative vehicle. Tesla’s Bitcoin purchases further legitimized the asset class, attracting institutional attention and boosting mainstream adoption.If even one state successfully implements a Bitcoin reserve model, the floodgates could open for others. Such initiatives could improve state finances and accelerate the institutionalization of cryptocurrency across the U.S. They could also force a clearer federal stance on digital assets, making them more appealing to institutional investors still wary of regulatory uncertainty.

The trend toward state-level Bitcoin reserves signals a fundamental shift in how financial assets are managed in the U.S. and beyond. These early steps might soon snowball into a global movement, redefining financial governance and asset management. Cryptocurrencies, once a niche concept, are becoming a cornerstone of modern finance – and Utah is just the beginning.

The idea of U.S. states holding Bitcoin reserves isn’t just an experiment in fiscal policy – it’s a direct challenge to the financial status quo. If Utah succeeds in making Bitcoin part of its treasury, the implications will ripple far beyond its borders, forcing traditional markets, banks, and even the federal government to rethink their approach to digital assets.

For Wall Street, this move is both a warning and an opportunity. On one hand, state-backed Bitcoin reserves could accelerate mainstream financial adoption, pressuring institutional investors to take crypto more seriously. On the other, they pose a direct threat to the dominance of bonds and fiat-based reserves, shaking up deeply entrenched models of capital allocation. If states start moving even a fraction of their budgets into digital assets, risk management strategies across major financial institutions will have to evolve fast—or risk falling behind.

But not everyone is convinced. From a more skeptical perspective, handing taxpayer funds over to Bitcoin’s notorious volatility feels like a reckless gamble. Governments are built on predictability, yet crypto remains anything but. A sharp market downturn could lead to massive losses, opening the door for legal battles, political fallout, and a broader crisis of confidence. The rejection of Montana’s bill already highlights this fear – many lawmakers simply aren’t ready to tie state finances to an asset class that can drop 20% in a week.

For those who believe in free markets and the power of bold moves, however, Utah’s initiative is nothing short of brilliant. The state is betting on Bitcoin not just as a hedge against inflation, but as an asset that could redefine wealth storage in the 21st century. We’ve seen corporations like Strategy ₿ (MicroStrategy) and Tesla push Bitcoin into mainstream balance sheets – why not governments? If even one state proves that a Bitcoin reserve can strengthen its financial position, others will follow. At that point, we’re no longer talking about an experiment; we’re talking about a new financial reality.

And what about Europe? The EU has been cautiously navigating the crypto space, with regulations like MiCA and DORA laying the groundwork for a more controlled approach. But if U.S. states begin hoarding Bitcoin, European policymakers may be forced to accelerate their own strategies – whether through a digital euro or by rethinking how they classify and regulate digital assets. The eurozone thrives on stability, and the idea of states parking public funds in a decentralized, unregulated asset runs counter to its core philosophy. But ignoring this shift could mean falling behind in the next evolution of global finance.

One thing is certain: this is just the beginning. State-level Bitcoin reserves aren’t just a quirky policy proposal; they’re a sign that financial governance is entering uncharted territory. Whether this leads to greater economic resilience or a spectacular disaster remains to be seen. But the mere fact that governments are seriously considering it means the game has already changed.

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