Lawmakers in Arizona have proposed establishing a digital asset reserve fund, and data shows that the bill includes Ripple’s XRP, among other cryptocurrencies. The bill aims to diversify the State government’s digital assets, rather than relying on a single dominant asset. The State expects them to provide a long-term value or come of practical use in the future.
While various State governments are looking at Bitcoin, Arizona plans to diversify its assets with XRP and other tokens. Lawmakers are also considering its potential functionality alongside their role as a store of value. The development indicates that the State is ahead when compared to others in embracing the new financial system.
Along with XRP, Arizona is exploring the potential of holding Bitcoin, DigiByte, and stablecoins, among other cryptocurrencies. The focus is also on seizing unclaimed property and keeping it under the State’s reserves. This would push Arizona into a new territory and be ahead of the curve compared to other States. The move is seen as modernizing the State’s finances from regular savings accounts to going digital.
Also Read: Ripple Price Prediction: What Will XRP’s Price be at the End of Q1?
What Next For XRP If Arizona Approves the Digital Asset Reserve Bill?
Ripple’s native token XRP is already up nearly 2.5% after the news of the Arizona bill broke out. However, if lawmakers approve the bill, the leading altcoin could surge further in the charts. The State Treasurer will diversify its holdings rather than keeping only the US dollar. The USD is also on the decline, and exposing 100% of its portfolio to the currency is risky.
Therefore, using the seized tokens under Arizona’s State Treasury, which includes XRP, will be beneficial. It also provides a long-term strategy allowing lawmakers to decide its prospects. If Arizona succeeds, other states could also begin to diversify their balance sheets and start adding digital assets. The US will be the leader in the digital asset sector and be ahead of the curve.