The Arizona Senate Finance Committee has approved a bill that would allow the state to invest public funds in cryptocurrency.

The Arizona Strategic Bitcoin Reserve Act (SB 1025) passed with a 5-2 vote and was introduced by Senator Wendy Rogers and Representative Jeff Weninger.

The bill allows public funds to invest up to 10% in virtual currencies.

If passed, Arizona will become the first state to require public funds to hold bitcoin.

The bill will now move to the Senate Rules Committee for further discussion before being considered by the House of Representatives.