Similar to many US states, Illinois is also making a similar move with the introduction of HB1844, a bill proposing the creation of a Strategic Bitcoin Reserve. 

Sponsored by Representative John M. Cabello, the legislation aims to position Bitcoin as a financial asset within the state's treasury, a step that could redefine how governments approach digital currency holdings.‍

A Bitcoin Reserve for Illinois

The bill outlines the establishment of the Strategic Bitcoin Reserve Fund, a dedicated fund in the state treasury designed to hold Bitcoin.

Under the proposal, the Illinois State Treasurer would be responsible for managing the reserve, ensuring that Bitcoin donations from Illinois residents and governmental entities are securely stored. All Bitcoin deposited into the fund would be held for at least five years before any potential liquidation, conversion, or appropriation.‍

Security and Management Protocols

To maintain the integrity of the fund, the bill mandates the implementation of robust security measures, including cold storage solutions to protect assets from cyber threats. The State Treasurer would also be required to conduct regular audits, ensuring transparency and proper management of the fund.

Additionally, the legislation includes provisions to prohibit transactions involving foreign entities or individuals associated with illicit activities, reinforcing the state’s commitment to regulatory compliance.

One of the most interesting aspects of the bill is the option for Illinois residents to voluntarily donate Bitcoin to the fund. In recognition of contributions, donors may receive certificates of acknowledgment, with the possibility of a public recognition program to honor significant donations.

The State Treasurer would also be required to submit a biennial report detailing the total Bitcoin holdings, their equivalent value in US dollars, and any changes in fund growth or management. This report would be accessible to both lawmakers and the public, ensuring ongoing accountability.