Texas has passed the strategic Bitcoin reserve bill, becoming the first US state not only to approve but also to allocate public funds to BTC acquisition.
The governor of the Lone Star State, Greg Abbott, signed the bill into law over the weekend, becoming the latest to approve holding Bitcoin, the largest cryptocurrency by market cap. Recall that the Texas Senate passed the Texas Senate Bill 21 (SB 21) in March amid bipartisan support.
Texas Set to Buy Bitcoin
The Texas strategic Bitcoin bill aims to allocate a portion of the state’s public reserve funds to acquiring Bitcoin. Notably, Texas will manage the reserve independently from its main treasury, aiming to protect the state’s purchasing power from inflation and other economic decadence.
Meanwhile, Texas’ Bitcoin reserve approval stands out in several ways. Although it is the third state after Arizona and New Hampshire to sign a strategic Bitcoin reserve bill, it is the first to create a special framework for holding its acquired BTCs.
This is because Governor Abbott also signed the HB 448 bill, providing the Bitcoin reserve protection from routine fund sweeps into Texas’s main treasury.
Furthermore, it will become the first state to allocate public funds to buying the pioneering cryptocurrency. Abbott signed that Texas would allocate $10 million from its reserve funds to purchase Bitcoin.
Interestingly, the bill allows Texas to pursue other means to increase its stash order than direct purchases. Some of which include airdrops, crypto donations, and profits from other investments.
Paradigm Shift in Bitcoin’s View
The growing number of states adopting Bitcoin signals a paradigm shift in how public entities view the cryptocurrency. Once seen as a speculative asset with little or no intrinsic value, Bitcoin’s reputation has evolved quickly to become a store of value and a sovereign financial instrument with long-term value.
This view has prompted states to establish a strategic Bitcoin reserve. They are also following in the footsteps of a similar establishment in the United States. President Donald Trump signed an executive order creating a national strategic Bitcoin reserve months ago, aiming to fund the stockpile through budget-neutral schemes.
Aside from the US, countries like China, El Salvador, and Bhutan also hold Bitcoin. Meanwhile, more countries are exploring the prospects of creating a strategic Bitcoin reserve, including Pakistan, Brazil, the Czech Republic, Ukraine, and Russia.
Aside from states and nations, corporate firms are also incessantly taking the orange pill. France-based public firm Sequans Communication announced yesterday that it was raising $384 million to buy Bitcoin, following in the footsteps of its compatriot, the Blockchain Group.
Nakamoto Holdings, a firm led by David Bailey, has also entered the Bitcoin treasury business, announcing plans to raise $51 million to buy Bitcoin. Trump Media, GameStop, and Japan’s Enish all plan to or are already purchasing Bitcoin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
