Key Takeaways
- Texas lawmakers are discussing a Bitcoin reserve.
- The state's $2.4 trillion economy underscores its significance.
- Similar efforts are underway at national and international levels.
Texas may soon join the conversation around strategic Bitcoin reserves. At the North American Blockchain Summit on Nov. 21, Dennis Porter, CEO of the Satoshi Action Fund (SAF), revealed that a Texas lawmaker has begun discussing potential legislation to establish such a reserve.
Porter emphasized the significance of this initiative, noting Texas’s position as the world’s eighth-largest economy with a GDP of $2.4 trillion in 2022. He suggested that a state-level Bitcoin reserve would provide economic resilience and enhance the security of Bitcoin mining within the United States.
Porter explained:
Bitcoin mining runs on razor-thin margins. Outside actors could suppress Bitcoin prices to threaten U.S. miners. A strategic reserve could act as a shock absorber.
Texas isn’t alone in exploring Bitcoin reserves. In July, U.S. Senator Cynthia Lummis introduced a bill to establish a national Bitcoin reserve, and Pennsylvania lawmakers proposed allowing their treasury to allocate up to 10% of its balance sheet to Bitcoin.
Internationally, Poland’s presidential candidate Sławomir Mentzen has pledged to create a Bitcoin reserve if elected.
The idea of a Bitcoin reserve has gained momentum, with Porter comparing its potential impact to historic moves like the Louisiana Purchase.
Porter said:
There’s a race to see who passes strategic reserve legislation first. No matter who wins, all of us win.
