Texas creates strategic Bitcoin reserve – Crypto Valley Journal
Texas becomes the first US state with an officially taxed Bitcoin fund – a historical step towards digital stability. Other states could follow the example.
The governor Greg Abbott signed Senate Bill 21 (SB 21) and thus made Texas the first US state to use public money for a strategic bitcoin reserve. The reserve is managed by the State Compotroller, an expert group accompanies the development. The aim is to establish Bitcoin as inflation protection and financial diversification tool – regardless of the regular state budget.
Structure and governance
Financing takes place via a special fund, separated from the general budget. Gelder can be made from tax revenue, stock exchange profits, donations, Airdrops or forks. Approved systems require a minimum of 500 billion USD market capitalization – currently only fulfilled by Bitcoin. A public report on stocks and performance appears every two years. The governor already signaled strong support for the law.
Proponents like Senator Charles Schwertner and Rep. Giovanni Capriglione see Bitcoin as a digital gold. It stabilizes the state finances, act against US dollar risks and position Texas as a crypto control location. The regulation follows similar initiatives in Arizona and New Hampshire, whereby Texas uses public money for the first time – a significant difference.
Criticism and challenges
Critics warn of risks such as high volatility and a lack of understandability of the blockchain investments. Some see the project as unnecessary state support from the crypto industry. The environmental debate also remains because Bitcoin -Mining consumes a lot of energy. Nevertheless, the legislator remains in his vision of making Texas more economically resilient and future -proof.
The decision for a state Bitcoin reserve is also related to Texan's leading role in the US crypto mining sector. The state houses some of the country's largest mining farms and benefits from comparatively favorable energy and crypto-friendly regulation. The new reserve initiative could therefore also be understood as a signal to the industry that Texas wants to further expand its role as a crypto hub-with an ecosystem that ranges from regulatory openness to institutional acceptance.
Texas is a growing movement – a total of three US states already approved Bitcoin reserves. The procedure could be trendsetter for national strategies, especially if the US government drives similar plans.
