A state representative in Texas has introduced a bill to establish a strategic Bit reserve. This bill is part of a growing trend of several states and internationally introducing similar reserves.
State Representative Giovanni Capriglione proposes that taxes, fees, and donations can fill this reserve, but argues that if there is sufficient political support, Texas could directly purchase Bit.
Texas Bit Reserve
According to CNBC, this pro-cryptocurrency bill allows the state of Texas to establish a Bit reserve. However, the bill does not include a provision for the state to directly purchase BTC.
Instead, it allows the state to receive taxes, fees, and donations in Bit. As Texas is a major regional mining hub, several companies would be willing to make such payments.
"My goal is to make this bill as big and broad as possible. In the initial stages, I'm trying to allow for selectivity and flexibility, but if I can get the support of other legislators, I'll make it stronger." – Republican state representative Giovanni Capriglione, the original sponsor of the bill.
Capriglione's bill was inspired by President-elect Trump's plan to establish a national Bit reserve. The largest cryptocurrency reached new all-time highs after his re-election, reaching $100,000 in early December. Additionally, the US already holds the most BTC, accumulated from the Silk Road seizure.
However, President Biden may start selling off this existing BTC supply towards the end of his term. Notorious Bit critic Peter Schiff has encouraged this move.
Even if Trump's plan to establish a national Bit reserve is thwarted next month, several states are pursuing independent initiatives. Florida's Chief Financial Officer proposed another state-level reserve in October, and a similar bill has been introduced in the Pennsylvania House.
This trend is also spreading internationally. Last month, a Polish presidential candidate promised to implement a Bit reserve if elected. A member of the Russian State Duma also introduced a similar bill this week. This could provide a counterbalance to the arguments against a US Bit reserve.
Ultimately, if several countries are creating national reserves, it would be disadvantageous to deliberately weaken the US. Regardless, Capriglione's efforts to create a reserve in Texas could be pioneering. The state is strongly controlled by Trump's party, but will ordinary representatives support Bit? Time will tell.
