The bill’s objective is to replicate the national-level initiatives in the United States by establishing a strategic Bitcoin reserve in the state of Texas.
The Texas legislature will contemplate the implementation of a Bitcoin strategic reserve in response to the introduction of a measure on Thursday that aims to establish such a program. This comes in the context of ongoing efforts to implement a similar program on a national scale in the United States.
Giovanni Capriglione, a Texas State Representative, introduced the proposed measure, H.B. No. 1598. It aims to establish a Bitcoin supply for the state that will be held for a minimum of five years without being sold. Additionally, it will enable Texas citizens to contribute to the fund.
The bill’s text states that “a strategic Bitcoin reserve is consistent with Texas’s dedication to promoting innovation in digital assets and ensuring the financial security of Texans.”
The measure specifies that the cryptocurrency, which is stored in cold storage (i.e., a wallet on a device that is not connected to the internet), will not be utilized for transactions outside of the state or internationally.
Capriglione stated during a Spaces live event on X (formerly known as Twitter) on Thursday that the concept had been in the works for some time in response to a query from Decrypt.
“We have gradually established the seedlings and provided members with the necessary education,” he stated, noting that inflation is “likely the greatest adversary of our investments.”
Launched in 2009, Bitcoin is a payments network that enables the transfer of funds without the necessity of a centralized authority, such as a bank. However, it has since transformed into a store-of-value asset, which individuals advocate for as an inflation hedge.
President-elect Donald Trump has previously advised individuals to refrain from selling their Bitcoin, and certain legislators are now advocating for the government to maintain Bitcoin in reserves, similar to the way it currently does with gold. Earlier this year, Senator Cynthia Lummis of Wyoming introduced a measure to establish a program of this nature for the United States.
In recent years, Texas has been a magnet for Bitcoin miners due to its affordable electricity and government incentives that are designed to motivate miners to stabilize the electricity grid.
The United States government has already confiscated a substantial amount of Bitcoin from criminals. Arkham Intelligence, a blockchain data firm that monitors significant crypto accounts, estimates that the present government holdings exceed 198,000 Bitcoin. At the current price, the cryptocurrency is worth over $20 billion.
Capriglione stated on the Spaces that there has been a surge in interest in Bitcoin and the concept of a strategic reserve since Trump’s election victory, as the Republican candidate conducted a strong pro-crypto campaign.
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