Summary:
Texas proposes a strategic bitcoin reserve to tackle inflation and economic volatility.
No taxpayer funds will be used to purchase bitcoin; it will come from donations and existing state resources.
The initiative aims to position Texas as a global financial powerhouse.
The bill must pass through a committee referral, public hearing, and vote before being approved.
Experts urge Texas to act quickly to establish a bitcoin reserve amid growing adoption.
Texas Proposes Strategic Bitcoin Reserve
DALLAS, Texas – On Thursday, Texas representative Giovanni Capriglione introduced a new bill aimed at establishing a strategic bitcoin reserve in the Lone Star State to combat inflation and economic volatility. This initiative will enable Texas to accumulate cryptocurrency within the state treasury through bitcoin-denominated donations, taxes, or fees, which must remain untouched for a minimum of five years before they can be sold or moved.
Lee Bratcher, president of the Texas Blockchain Council, emphasized that no taxpayer funds will be utilized to purchase bitcoin, ensuring a higher chance of the bill's passage. The bitcoin will be sourced from donations by Texans, U.S.-based companies, and other existing state resources.
Kadan Stadelmann, Chief Technology Officer of Komodo Platform, remarked on the proposal's alignment with Texas's financial ambitions, stating that the state aims to become a global financial powerhouse. He noted that Texas had previously decided to launch the Texas Stock Exchange, set to open next year in Dallas.
Stadelmann highlighted that, among other advantages, the reserve would empower Texas—home to over 30 million residents—to formulate its own bitcoin strategy, akin to those of nations like Bhutan and El Salvador. He asserted that it won't be the stock exchange that positions Texas at the heart of the financial universe, but rather its leadership in bitcoin reserves and related matters.
The Texas legislature is slated to convene in January, but the bitcoin reserve bill must first undergo a committee referral, public hearing, debate, and vote before it can be passed by both chambers and sent to Governor Greg Abbott for approval. Stadelmann urged Texas to act swiftly, stating, "Texas should want to be early and do it now." He noted that with the rapid adoption of bitcoin, Texas would inevitably need to advance with a bitcoin reserve bill, whether now or later, as other states and nations establish their own reserves.
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