A new bill has been proposed in Michigan that could potentially revolutionize the way the state manages its funds. The bill, filed in the state’s House, would allow Michigan to invest in cryptocurrency and lend it out to generate higher yields for state funds.

This move comes as no surprise, as cryptocurrency has been gaining more mainstream acceptance and adoption in recent years. With its decentralized nature and potential for high returns, it has caught the attention of many investors and governments alike.

The bill proposes that Michigan would use a portion of its state funds to purchase cryptocurrency, such as Bitcoin or Ethereum, and then lend it out to reputable borrowers. This would not only diversify the state’s investment portfolio, but also potentially generate higher returns compared to traditional investments.

One of the main advantages of this approach is the potential for passive income. By lending out the cryptocurrency, the state would earn interest on the borrowed funds, which could then be reinvested or used for various state projects and initiatives.

However, this move is not without its risks. Cryptocurrency is known for its volatility, and the state would need to carefully manage its investments to minimize potential losses. The bill addresses this concern by requiring the state to only lend out the cryptocurrency to borrowers with a proven track record and strong credit ratings.

If this bill is passed, Michigan would join a growing list of states and countries that have started to embrace cryptocurrency as a legitimate asset class. This could potentially attract more investors and businesses to the state, boosting its economy and creating new job opportunities.

Overall, this bill presents an exciting opportunity for Michigan to tap into the potential of cryptocurrency and potentially generate higher returns for its state funds. It will be interesting to see how this proposal progresses and the impact it could have on the state’s financial landscape.