Cities and States Are Looking Hard at Cryptocurrencies: S&P

Sept. 15, 2021, 7:53 PM

U.S. state and local governments are growing more interested in investing in cryptocurrencies in their pension funds and accepting digital currencies as payments for taxes and services, according to S&P Global Ratings.

On the investment side, the outsized returns that cryptocurrencies have generated during a period of low bond yields have made some pension plans more interested, according to S&P’s Sept. 15 note. Over the 12 months ended Aug. 20, Bitcoin and Ethereum have had respective returns of 326% and 745%, S&P analysts wrote.

While these returns can fluctuate wildly -- in 2018 Bitcoin fell around 75% -- recent gains ...

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