ADAMS COUNTY, Pa. — Amid Bitcoin's value eclipsing $90,000 for the first time, Pennsylvania lawmakers are looking at ways to get in on the crypto surge.
In a memo to lawmakers, outgoing Representative Mike Cabell (R-Luzerne) proposed a bill that would allow the state treasurer to invest up to 10% of the Pennsylvania's $9 billion general fund into Bitcoin.
“It’s an opportunity for Pennsylvania to be a leader in this realm," said Rep. Torren Ecker (R-Adams).
Rep. Ecker said he plans on taking on the bill once the new legislative session begins in January. He said the bill would give Pennsylvania another investment opportunity to combat inflation and improve the state's finances.
“It gives us an opportunity to be competitive at a national level and international level through the investments we make as a state," said Rep. Ecker.
Rep. Ecker added that states like Wisconsin have already started investing in Bitcoin for its pension funds.
Yeva Nersisyan, an associate professor and department chair of economics at Franklin and Marshall College, said investing state funds into Bitcoin would be risky for Pennsylvania.
“The question is, do you want your state funds to be invested in speculative assets?”
Nersisyan said Bitcoin and other cryptocurrencies are unlike traditional financial assets, making them incredibly volatile. She added that Pennsylvania could risk losing any returns if the crypto market cools off.
"Yes, you could make a lot of money. But you don't know when the tide is going to turn," said Nersisyan. “Everybody thinks they’re going to be the one to jump out before the tide turns. But are they actually going to be able to do it? The answer is probably not.”
As the value of some cryptocurrencies continue to increase, Rep. Ecker said he wants to give Pennsylvania another tool to help the state grow.
"This isn't the wild west, so to speak, on this investment. This is something many folks invest in already," said Rep. Ecker. "It's a huge opportunity for the state to get involved."