Arizona Governor Katie Hobbs faced criticism from Bitcoin proponents and government officials after vetoing a bill that would have allowed the state to hold Bitcoin as part of its official reserves. The bill, known as the Arizona Strategic Bitcoin Reserve Act, was co-sponsored by Wendy Rogers and State Representative Jeff Weninger. The proposed legislation would have permitted Arizona to invest seized funds into Bitcoin and create a reserve managed by state officials.

In response to the veto, Casa co-founder Jameson Lopp expressed his disappointment, stating, “This will age poorly.” Anthony Pompliano, a well-known Bitcoin entrepreneur, criticized the decision, saying, “Imagine the ignorance of a politician to believe they can make investment decisions.” Pompliano further emphasized the importance of government officials understanding the potential of Bitcoin, referring to it as “the future.”

Rogers, one of the bill’s sponsors, voiced her disappointment with the governor’s decision, highlighting the significance of Bitcoin for Arizona. She emphasized that Bitcoin does not need Arizona, but rather Arizona needs Bitcoin. Despite the setback, Rogers indicated that she plans to refile the bill during the next session.

Hobbs defended her veto by stating, “The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments.” However, Rogers pointed out that the state retirement system already holds stocks of Michael Saylor’s Strategy (MSTR), which she described as essentially a leveraged Bitcoin ETF.

While some critics, including renowned crypto skeptic Peter Schiff, supported Hobbs’ decision, the veto disappointed those who believe in the potential of Bitcoin for government reserves. If the bill had passed, Arizona would have become the first US state to establish a Bitcoin Strategic Reserve.

The rejection of the bill in Arizona reflects a broader trend in the United States, where similar efforts in states like Oklahoma, Montana, South Dakota, and Wyoming have faced obstacles or been withdrawn. Despite setbacks, proponents of Bitcoin and cryptocurrency continue to advocate for greater acceptance and understanding of digital assets in government institutions.

As the debate over the role of Bitcoin in official government reserves continues, the future of cryptocurrency adoption in traditional financial systems remains a topic of ongoing discussion and contention.

Source: https://cointelegraph.com/news/arizona-governor-katie-hobbs-veto-bitcoin-bill-bitcoiners-react?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound