As the world becomes increasingly digital, states are beginning to take notice of the potential benefits of embracing cryptocurrency. In an interview with a local publication, Alabama State Auditor Andrew Sorrell expressed his support for creating a state Bitcoin reserve.
The Pros of Crypto in Alabama
Sorrell, a former state legislator and long-time supporter of cryptocurrency, believes that embracing crypto would not only attract business to the state but also enhance the stability of the state’s finances. "Crypto is here to stay," he said, adding that "the fight for which states will benefit from it has begun." According to Sorrell, the states that are first to adopt a tax and regulatory framework that is friendly to crypto will attract business and investment.
The Benefits of Cryptocurrency Investment
Sorrell pointed out that cryptocurrency represents a better value compared to traditional investments such as bonds. "It [cryptocurrency] is also the most rapidly growing asset class (averaging an astounding 55% a year for the last 15 years)," he said. He noted that investing in Treasuries and bonds has its place, but earning a 4% yield while inflation is 2.7% is barely breaking even.
Building a Bitcoin Reserve
Sorrell suggested that the Alabama Bitcoin reserve should be modeled on the Federal BTC reserve promised by President-elect Donald Trump. Since BTC is in a bull market, he recommended building up the reserve with monthly buys over two years. Diversifying away from the US dollar would be prudent, Sorrell said. "What happens if the dollar ceases to be the reserve currency of the world? What happens if inflation runs 8% again like it did during the post-pandemic era?" he asked. According to Sorrell, Bitcoin’s value is unaffected by what happens to the U.S. dollar.
Alabama’s Crypto-Friendly Politics
Alabama is home to many pro-crypto politicians on the state and federal levels. US Senator Tommy Tuberville is perhaps the most active pro-crypto federal legislator. The state has passed an act to create the Alabama Blockchain Study Commission in May, which will study crypto regulation, taxation, mining, and other questions. However, a bipartisan bill to prohibit the state from restricting digital asset storage or mining or levying additional taxes on digital assets failed to pass this year.
The Future of Crypto in Alabama
While progress has been slow, there is still hope for the future of crypto in Alabama. With politicians like Sorrell and Tuberville pushing for a more crypto-friendly environment, it’s likely that we’ll see more developments in the coming years. As the world becomes increasingly digital, states that are willing to adapt will be well-positioned for success.
Related Articles
- Wyoming stablecoin may launch Q1 2025 — Governor Mark Gordon: Wyoming is one of several states that has been actively promoting cryptocurrency and blockchain technology.
- Alabama making slow progress on crypto: While Alabama has made some progress in embracing crypto, there’s still much work to be done.
Subscribe to the Law Decoded Newsletter
Stay up-to-date with the latest news and developments in the world of crypto laws and regulations. Our newsletter is delivered every Monday and provides you with the information you need to make informed decisions about your crypto ventures.
About Us
At [Publisher’s Name], we’re committed to providing our readers with accurate, reliable, and unbiased information about the world of cryptocurrency and blockchain technology. Whether you’re a seasoned investor or just starting out, we have the resources and expertise to help you navigate this complex and ever-changing landscape.
