U.S. State Proposes Bill to Establish Strategic Bitcoin Reserve

The Texas House of Representatives has introduced a bill to create a strategic Bitcoin reserve. This proposal is thought to potentially serve as a testing ground for the U.S. Treasury Department. Republican state representative Giovanni Capriglione announced the bill that would allow the state of Texas to begin accepting taxes, fees, and donations in Bitcoin, and to hold these for at least five years.

The bill aims to strengthen Texas's financial stability and position the state as a leader in Bitcoin innovation. Capriglione stated that inflation is the biggest enemy of investments and expressed that investing through a strategic Bitcoin reserve would provide mutual benefits. The legislation proposes the establishment of a Bitcoin reserve within the Texas Treasury and aims to introduce regulations regarding the management of cryptocurrencies by government and related entities.

Discussions about creating a strategic Bitcoin reserve across the U.S. are increasing. Texas, being the second-largest economy in the U.S. and eighth in the world, aims to lead in this area, as it is one of the states with the highest Bitcoin miner concentration in the country. While the bill does not include a direct Bitcoin purchasing strategy, Capriglione intends to make it more comprehensive should it gain support.

The idea of establishing a strategic Bitcoin reserve nationwide continues to find backing, especially as one of Donald Trump's crypto-friendly campaign promises. Since the presidential elections, Bitcoin's value has risen by over 45%. Pennsylvania was the first state to introduce a similar bill last November, and over ten other states, along with four other countries, are working on similar regulations. With contributions from Satoshi Action Fund, multiple states are preparing Bitcoin-related legislation.