Texas State Representative Giovanni Capriglione just introduced a bill to create a Strategic Bitcoin Reserve for the state. This means Texas will be incorporating the world’s #1 digital asset into its financial system and be a leader in blockchain technology.
The bill is titled the “Texas Strategic Bitcoin Reserve Act” and was unveiled on December 12 at an online event on X. Representative Capriglione called it a big deal for the state’s economy and future fiscal challenges.
The Act takes effect immediately if it receives a two-thirds vote of all members elected to each house.
The Texas Strategic Bitcoin Reserve Act creates a special bitcoin fund in the treasury. Bitcoin will be used as a reserve asset and held in cold storage wallets to keep it safe from cyber attacks. The bill requires transparency with yearly reports and audits.
The bill highlights:
- Texans can donate bitcoin to the reserve voluntarily.
- Government agencies can accept certain digital assets for payment and convert them to bitcoin.
- Bitcoin must be held for at least 5 years before transfer, sale or conversion.
- There will be strict rules regarding transactions associated with foreign entities or individuals involved in illegal activities.
“No taxpayer funds will be spent on buying bitcoin,” said the Texas Blockchain Council, the advocacy group that helped draft the bill. Instead, the reserve will be funded by voluntary contributions from residents, businesses and others, and by government fees collected in bitcoin.
Representative Capriglione highlighted Bitcoin’s decentralization and limited supply, saying:
“Inflation remains a significant challenge to maintaining the value of long-term investments. This initiative offers an opportunity to explore Bitcoin as a potential safeguard for the state’s financial stability.”
Also, this will help Texas become a Bitcoin innovation hub. Texas has the most bitcoin miners in the US and is the 2nd largest economy in the country.
“My goal is to make this bill as big and as broad as possible,” He noted.
The idea of a bitcoin reserve isn’t limited to Texas. It’s spreading globally and also across the US.
Pennsylvania, Brazil and Russia are looking into it. Pennsylvania was the first state to propose putting bitcoin in its treasury reserves, aiming to put up to 10% of its $7 billion fund into bitcoin.
Brazil has introduced a bill to create a Bitcoin Sovereign Strategic Reserve (RESBit) and put $18.6 billion or 5% of its international reserves into it.
Trump’s victory as a pro-Bitcoin candidate helped fuel this trend. He said he will keep any bitcoin the US government acquires as part of a national stockpile.
The Texas Bitcoin Reserve bill is exciting, but has a long way to go. It needs vote of 2/3 of the legislature to pass and to be signed by the governor.
Despite that, Bitcoin enthusiasts are hopeful. Dennis Porter, co-founder of the Satoshi Action Fund, believes this is a big deal, and a real effort to explore Bitcoin in the financial sector.
Lee Bratcher, president of the Texas Blockchain Council, agrees. He explained that this bill will create jobs and bring tech companies to Texas. He said:
“Chairman Capriglione is the Chair of the Texas Pensions, Investments, and Financial Services Committee, so this bill has legs!”
The bill will be considered during the next regular session of the Texas legislature on January 14, 2025. If passed it will expire on September 1, 2035 unless renewed.
By doing this, Texas is putting itself in a position to be a leader in Bitcoin adoption and innovation and set a precedent for other states and countries.
As Bitcoin goes mainstream globally, bills like the Texas Strategic Bitcoin Reserve will change how governments think about financial stability and technological progress. Whether it passes or not, it’s clear Bitcoin is being recognized as a serious financial asset.
