Minnesota has taken a significant step towards embracing digital assets with a newly introduced Bitcoin bill.

The Minnesota Bitcoin Act (SF2661), presented by Senator Jeremy Miller, seeks to modernise the state's financial system and position it as a leader in the cryptocurrency space.

The proposed legislation would permit the Minnesota State Board of Investment to allocate state funds to Bitcoin and other digital assets, treating them similarly to stocks and bonds.

Additionally, state employees would have the option to include cryptocurrencies in their retirement plans, expanding their investment choices.

Under the bill's provisions, residents could also pay state taxes and fees using Bitcoin. Furthermore, tax incentives would allow certain cryptocurrency gains to be deducted from taxable income, potentially encouraging further adoption of digital assets in the state.

Minnesota joins a growing number of US states considering cryptocurrency-related policies. Texas recently introduced a bill to invest$250 million in Bitcoin, while Senator Cynthia Lummis proposed expanding the US government's Bitcoin holdings through an updated Strategic Bitcoin Reserve Act.

For more information on these topics, visit diplomacy.edu.