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A Texas State Delegate just proposed legislation to establish a Strategic Bitcoin Reserve. The bill is part of a growing trend to introduce similar reserves in several states and internationally.
State representative Giovanni Capriglione suggested that taxes, fees and contributions could fill this reserve, but he stated that Texas could buy Bitcoin directly if there was enough political support.
A Texas Bitcoin Reserve
As reported by CNBCthis pro-cryptocurrency law would allow the state of Texas to build a Bitcoin Reserve. However, the bill does not include a provision allowing the state to directly purchase BTC.
Instead, it will allow the state to receive taxes, fees, and contributions in Bitcoin. Texas is a major regional mining hub, so it’s likely that many companies will be willing to make these payments.
“My goal is to make this bill as big and broad as possible. This first step is to allow a little discretion and flexibility, but if I can get support from other lawmakers, we will make it even stronger,” said the Delegate’s statement. Republican state Giovanni Capriglione, who proposed the bill.
Capriglione’s bill is inspired by President-elect Trump’s plan to establish a National Bitcoin Reserve. The largest cryptocurrency soared to new heights after his re-election, reaching the $100k mark in early December. Furthermore, the US is already the largest holder of BTC, accumulated from funds seized from the Silk Road.
However, President Biden may begin selling off these existing BTC during the latter part of his term. Famous Bitcoin critic Peter Schiff encouraged the move.
Even if Trump’s plan to create a National Bitcoin Reserve is pushed back next month, several states are pursuing independent initiatives. Florida’s Chief Financial Officer proposed a national reserve in October, and there is a similar bill in the Pennsylvania House of Representatives.
This trend is also growing internationally. Last month, a presidential candidate in Poland’s upcoming election pledged to implement a Bitcoin Reserve if elected. Deputies in the Russian State Duma also submitted a similar bill this week. In other words, there could be a counterweight to the arguments against the US Bitcoin Reserve.
After all, if many countries are creating national reserves, intentionally weakening the United States is clearly detrimental. In any case, Capriglione’s attempt to create a reserve in Texas may be a foreboding sign. The state is heavily controlled by Trump’s party, but will grassroots delegates support Bitcoin? Only time can tell.
General Bitcoin News
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