Key Takeaways
- Texas proposes a strategic Bitcoin reserve to hold Bitcoin for five years.
- The state aims to collect taxes, fees, and donations in Bitcoin.
- The bill reflects broader interest in state and national Bitcoin reserves.
Texas lawmakers have proposed legislation to create a strategic Bitcoin reserve, potentially making the state a pioneer in integrating Bitcoin into government financial strategies.
The bill, introduced by Republican State Representative Giovanni Capriglione on December 12, allows Texas to accept taxes, fees, and donations in Bitcoin, to be held for a minimum of five years.
Capriglione said during an X Spaces event:
The biggest enemy of our investments is inflation. A strategic Bitcoin reserve, investing in Bitcoin, would be a win-win for the state.
Implementation details
Texas, the second-largest economy in the U.S. and home to the nation’s highest concentration of Bitcoin miners, could see miners paying taxes in Bitcoin under this proposal.
While the initial draft excludes direct Bitcoin purchasing, Capriglione aims to expand the bill with broader provisions if legislative support grows.
Broader impact
The move aligns with growing calls for a national Bitcoin reserve, a campaign promise of President-elect Donald Trump.
States are also leading this trend; Pennsylvania introduced similar legislation last month, and other states and nations are considering comparable measures.
Bitcoin’s price has surged over 45% since the U.S. election, fueled by speculation about the establishment of national and state-level Bitcoin reserves.
Industry observers note that even if such reserves are unlikely in the short term, they generate market excitement and optimism about Bitcoin’s future role in government fiscal policies.
