Texas Introduces Bitcoin Reserve As Crypto Adoption Grows

A state representative in Texas has introduced legislation to establish a strategic bitcoin reserve. This bill is part of a growing trend to introduce similar reserves in many states and internationally.

State Representative Giovanni Gabrielio has suggested that taxes, fees and donations could fill this reserve, but says Texas could buy Bitcoin directly with enough political support.

A Texas Bitcoin Reserve

According to CNBC reports, this pro-crypto law would allow the state of Texas to build up its bitcoin reserves. However, the bill does not include direct purchases of BTC by the state.

Instead, it allows the state to accept taxes, fees and donations in Bitcoin. Texas is a major regional mining center, so many firms may be willing to make these payments.

“My goal is to make this bill as big and broad as possible. This first step is to allow some options and flexibility, but if I can get support from other lawmakers, we'll make it stronger,” said Republican state Rep. Giovanni Caprileone, who originally introduced the bill.

Capriglione's bill was inspired by President-elect Trump's plan to establish a national bitcoin reserve. The largest cryptocurrency, which reached the $100,000 mark in early December, rose to a new high following its reelection. Also, the US is already the largest holder of BTC, which has accumulated from the Silk Road seizure.

However, President Biden may start selling this existing BTC supply in a lame-duck time. Prominent Bitcoin critic Peter Schiff encouraged this move.

Although Trump's plan to create a national bitcoin reserve failed next month, several states are also pursuing independent initiatives. Florida's chief financial officer proposed another state-level reserve in October, and there is a similar bill in the Pennsylvania House of Representatives.

This trend is also growing globally. Last month, a presidential candidate in Poland promised to implement a bitcoin reserve if elected. A representative in Russia's State Duma introduced a similar bill this week. In other words, there could be a counterweight to the arguments against the US Bitcoin Reserve.

After all, if so many countries are building up national reserves, it would be bad for the US to deliberately kneel down. Either way, Capriglione's efforts to create a reserve in Texas could serve as a bellwether. The state is controlled by the Trump Party, but do the rank and file support Bitcoin? Only time will tell.