A Texas state representative has proposed legislation to establish a Strategic Bit Reserve. This bill is part of a growing trend to introduce similar reserves in some states and internationally.
State Representative Giovanni Capriglione suggested that taxes, fees, and contributions could fill this reserve, but he stated that Texas could directly purchase Bit if there is sufficient political support.
A Bit Reserve for Texas
According to a CNBC report, this pro-cryptocurrency law would allow the state of Texas to build a Bit Reserve. However, the bill does not include provisions for the state to directly purchase BTC.
Instead, it will allow the state to receive taxes, fees, and contributions in Bit. Texas is a major regional mining hub, so it is likely that many companies will be willing to make these payments.
"My goal is to make this bill as big and as broad as possible. This is the first step to allow a little bit of optionality and flexibility, but if I can get the support of other legislators, we'll make it even stronger," stated Republican State Representative Giovanni Capriglione, the bill's author.
Capriglione's bill is inspired by President-elect Trump's plan to establish a national Bit Reserve. This largest cryptocurrency has soared to new highs since his re-election, reaching the $100,000 mark in early December. Furthermore, the US has become the largest Bit holder, accumulated from seized Silk Road funds.
However, President Biden may begin selling off these Bit holdings during his final term. Prominent Bit critic Peter Schiff has encouraged this move.
Even if Trump's plan to create a national Bit Reserve is pushed back next month, some states are pursuing independent initiatives. Florida's Chief Financial Officer proposed a state-level reserve in October, and there is a similar bill in the Pennsylvania state House.
This trend is also developing internationally. Last month, a presidential candidate in the upcoming Polish election pledged to implement a Bit Reserve if elected. A member of the Russian State Duma also submitted a similar bill this week. In other words, there may be a counterweight to the US's anti-Bit Reserve arguments.
Ultimately, if many countries are creating national reserves, deliberately weakening the US would clearly be disadvantageous. In any case, Capriglione's effort to create a reserve in Texas may be an ominous sign. This state is firmly under Trump's party's control, but will the grassroots representatives support Bit? Only time will tell.
