Catenaa, Saturday, December 14, 2024 – A Texas legislator introduced a bill Thursday to establish a state-held Bitcoin strategic reserve, signaling the state’s ambition to further embrace digital assets.
The bill, H.B. No. 1598, sponsored by State Representative Giovanni Capriglione, aims to hold Bitcoin in cold storage for at least five years while allowing Texans to contribute to the reserve through donations.
“Creating a Bitcoin reserve aligns with Texas’s commitment to fostering innovation in digital assets and ensuring financial security for its citizens,” the bill states. It explicitly prohibits the use of these funds for transactions outside the state or involving foreign entities.
Capriglione, speaking during a live Spaces event on X (formerly Twitter), explained that the idea stemmed from concerns over inflation and a growing legislative focus on blockchain technology. “We’ve planted the seeds for this over time, and now more legislators are recognizing Bitcoin’s potential as a hedge against inflation,” he said.
Texas has become a hotspot for Bitcoin mining, thanks to affordable electricity and government incentives. The proposed reserve reflects broader interest in Bitcoin among U.S. policymakers. President-elect Donald Trump has encouraged holding Bitcoin, and Wyoming Senator Cynthia Lummis previously introduced a bill for a federal Bitcoin reserve.
The US government already controls over 198,000 Bitcoin, valued at $20 billion, largely seized from criminal cases.
