Arizonas Bitcoin Reserve Initiative Fails After Governors Veto

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

The official emphasized that public finances are not suitable for «unverified investments,» which she categorized digital currencies as.

Bill No. 1025, which was narrowly approved by the state House of Representatives (31 to 25), proposed investing confiscated funds in Bitcoin and establishing a state-managed reserve for digital assets.

The bill’s co-sponsors included Senator Wendy Rogers and Representative Jeff Weninger, both members of the Republican Party.

Hobbs’s decision has drawn sharp criticism from the Bitcoin community.

Arizona had the potential to be the first U.S. state to include digital gold in its financial reserves.

Earlier this month, it’s worth noting that President Donald Trump signed an executive order to establish a federal strategic Bitcoin reserve based on assets confiscated by the Treasury Department.

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