On December 11, COINOTAG reported that Alabama’s Auditor General, Andrew Sorrell, has proposed the creation of a strategic Bitcoin reserve (SBR). This initiative stems from increasing interest among federal and state policymakers in Bitcoin, especially following the notable uptick in Bitcoin values post the presidential election of Donald Trump, who actively campaigned on pro-Bitcoin policies. During a recent media engagement, Sorrell articulated his conviction in the inevitable success of cryptocurrencies, declaring, “The debate over the viability of cryptocurrencies is settled.” He pointed out that cryptocurrencies comprise a substantial $3 trillion asset class and emphasized Alabama’s current lack of participation in this burgeoning market.
Sorrell outlined three pivotal objectives for the establishment of an SBR: enhancing portfolio diversification, positioning the state as cryptocurrency-friendly, and safeguarding against currency-related risks. He posed a critical question regarding inflation, suggesting, “What if inflation hits 8% again?” In his view, Bitcoin’s value remains relatively insulated from fluctuations in the US dollar. Furthermore, he posits that investing in Bitcoin would fortify Alabama’s balance sheet, providing a robust asset base for potential future debt issuance.