Bitcoin-texas-flag-gID_7.jpg@png” />
In summary
- The Texas legislature explored the creation of a strategic Bitcoin reserve through a bill introduced by Rep. Capriglione.
- The project proposed keeping Bitcoin in cold storage for at least five years and prohibited transactions with foreign entities.
- Texas attracted Bitcoin miners for its cheap electricity, while the federal government already owned more than 198,000 seized Bitcoin.
The Texas legislature will consider adopting a strategic Bitcoin reserve following the introduction of a bill on Thursday to establish such a program, amid ongoing efforts to do the same nationwide in the United States.
The proposed bill, HB No. 1598, was introduced by Texas State Representative Giovanni Capriglione. It seeks to accumulate a reserve of Bitcoin for the state, with the funds held for at least five years without being sold, and will also allow Texas citizens to make donations to the fund.
“A strategic Bitcoin reserve aligns with Texas’ commitment to fostering innovation in digital assets and providing Texans with greater financial security,” the bill text notes.
The project adds that the Cryptocurrency — kept in cold storage, that is, in a wallet not connected to the internet — will not be used to make transactions out of state or abroad.
“The comptroller will prohibit transactions that involve foreign countries, entities or individuals outside of Texas, or entities or individuals known to engage in illegal activities,” it says.
This Thursday, responding to a question from Decrypt, Capriglione said live at a Spaces event on X (formerly known as Twitter) that the idea had been brewing for some time.
“We’ve slowly planted the seeds and educated members about this,” he said, adding that “probably the biggest enemy of our investments is inflation.”
Bitcoin is a payments network, launched in 2009 as a way to send money without the need for a centralized authority like a bank. But it has since evolved more into a store-of-value asset, defended by some as a hedge against inflation.
President-elect Donald Trump has previously told people not to sell their Bitcoin, and some politicians are now calling for the government to hold Bitcoin in reserves, as it already does with gold. Senator Cynthia Lummis of Wyoming proposed a bill earlier this year to establish such a program for the United States.
Texas has attracted Bitcoin miners in recent years due to its cheap electricity and government incentives aimed at encouraging miners to stabilize the power grid.
The US government already has a large amount of Bitcoin seized from criminals. Blockchain data firm Arkham Intelligence—which tracks large wallets in the crypto ecosystem—puts the government’s current holdings at more than 198,000 Bitcoin. That’s more than $20 billion worth of the cryptocurrency at current prices.
Capriglione said on Spaces that he has seen increased interest in Bitcoin and the idea of a strategic reserve since Trump’s election victory, as the Republican candidate ran a pro-cryptocurrency campaign.
“Since November, obviously, the amount of enthusiasm, desire and knowledge not only about the Bitcoin reserve, but about all those other things around this technology, blockchain and others, is taking up more space in the minds of policymakers,” he said . “And that’s a good thing. That’s because constituents care about these things.”
Additional reporting by Liz Napolitano
Editor’s note: This story was updated after publication with additional details.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
