West Virginia Looks to Gold and Bitcoin

Lawmakers in West Virginia have proposed a bill titled the Inflation Protection Act. If passed, it would allow up to 10% of the state treasury to be invested in gold, silver and platinum. It would also permit investment in Bitcoin, which meets the bill’s market capitalisation requirement.

One important detail is that the 10% cap applies only at the time of investment. For example, if a 10% allocation to precious metals were to triple in value, the treasurer would not be required to sell, even if it grew to represent closer to 30% of total holdings.

Another notable aspect of the bill is that it goes beyond simply allowing the state to hold crypto. Staking is also referenced as a potential income-generating activity. This suggests that crypto lending and yield-related services may be far from disappearing and adds pressure on major US banks to consider offering similar capabilities.

We have reported on several states moving to embrace precious metals over the past couple of years. With inflation proving stubborn and precious metals prices pushing to new highs, it is not difficult to see why states are being drawn back to this traditional form of protection.