Maryland Proposes Bitcoin Reserve, Joining Growing List of Crypto-Adopting States

Maryland, USA – Maryland has become the latest U.S. state to propose holding Bitcoin (BTC) as a reserve asset, marking a growing trend of state-level cryptocurrency adoption.

On February 7, 2025, State Representative Caylin Young introduced MD HB1389, a bill aimed at establishing a Bitcoin Strategic Reserve Fund. The legislation would allow Maryland to diversify its investments and use Bitcoin as a hedge against fiat inflation.

Key Highlights of the Proposal:

✔ Bitcoin Reserve Fund – Managed by the state treasurer for long-term holding.
✔ Funding Sources – Proceeds from gambling violation fines and Bitcoin donations from residents and government entities.
✔ Crypto for Payments – Government agencies would be required to accept Bitcoin for taxes, fines, and other payments.

Maryland joins 17 U.S. states, including Arizona, Alabama, Florida, Utah, and Kentucky, in exploring Bitcoin reserves.

U.S. vs. Global Crypto Reserves

💰 Senator Cynthia Lummis is pushing for a nationwide Bitcoin reserve, aiming to accumulate 1 million BTC—5% of the total supply—over five years.
🔻 The European Central Bank (ECB) remains opposed to Bitcoin reserves, citing liquidity and security concerns.
🌍 Countries like El Salvador and Bhutan already hold Bitcoin, while Germany, Poland, and Hong Kong are considering similar moves.

Implications for the Future

Maryland’s bill signals growing state-level confidence in Bitcoin as a legitimate asset class. If approved, it could set a precedent for how U.S. states integrate cryptocurrency into financial systems, challenging traditional investment strategies.