Cities and States Are Looking Hard at Cryptocurrencies: S&P
- Governments consider crypto for pension investments, payments
- Digitial currency investments can boost liquidity risk
Photographer: Angel Garcia/Bloomberg
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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.