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Is Texas About to Set Up a Bitcoin Reserve?

In the U.S. state of Texas, talks are coming up about implementing a strategic Bitcoin reserve after a bill with this aim was introduced yesterday.

By Mike Hesp
• 2 min read
Is Texas About to Set Up a Bitcoin Reserve?

In the U.S. state of Texas, talks are coming up about implementing a strategic Bitcoin reserve after a bill with this aim was introduced.

Giovanni Capriglione, a Republican representative, has introduced House Bill 1598 introduced. The proposal mirrors the plan by U.S. Senator Cynthia Lummis to build a reserve of up to one million Bitcoin at the federal level.

"A strategic Bitcoin reserve aligns with Texas's push to promote digital asset innovation and provide Texans with greater financial security," the bill text states.

The idea is for Texas to build its own Bitcoin reserve by accepting taxes, fees, and donations in Bitcoin in the future, which would then be securely stored for at least five years in hardware wallets.

"The biggest enemy of our investments is probably inflation," Capriglione explains his motivation. He adds: "A strategic Bitcoin reserve that invests in Bitcoin would be a win-win for the state."

Texas is, after California, the second-largest economy in the U.S. and would be the eighth-largest economy in the world as an independent state. Moreover, Texas has the highest concentration of Bitcoin miners in the United States.

The mining industry in the Lone Star State benefits mainly from low energy prices and a crypto-friendly political climate. You can see where the global Bitcoin hashrate comes from on Chain Bulletin's Mining Map.

It remains unclear whether a Bitcoin reserve will actually be set up in Texas or somewhere else in the U.S. In July, Trump promised to keep all BTC owned by the U.S. government permanently as the core of such a "national reserve."

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