1. United States
2. Wash.
3. Letter

Washington State should follow the lead of South Dakota and establish a strategic Bitcoin reserve. As a first mover, South Dakota is poised to pass legislation allowing up to 10% of state funds to be allocated to Bitcoin, recognizing its potential as a secure, decentralized asset. Bitcoin offers protection against inflation and centralized control over money. By acquiring Bitcoin as a reserve asset, Washington can hedge against economic uncertainties and assert monetary sovereignty. The proposed South Dakota bill includes strict security requirements for holding Bitcoin, such as multi-party governance over private keys and robust disaster recovery planning. This demonstrates a responsible approach to managing digital assets at the state level. As other states explore similar measures, Washington has an opportunity to be proactive in adopting a forward-thinking financial strategy. With its short legislative session ending in mid-March, South Dakota may become the first state to pass a Bitcoin reserve bill. However, this should not discourage Washington from pursuing its own strategic reserve. Being an early mover in this space would position the state as a leader in embracing innovative monetary policies and blockchain technology. Washington should initiate discussions on establishing a Bitcoin reserve to safeguard its financial future and maintain economic competitiveness.