Early in September, Texas made history by becoming the first U.S. state to fund a “strategic” bitcoin reserve. This decision marks an important step in the long march towards officialdom’s acceptance of digital assets. In June, Gov. Greg Abbott signed the Texas Strategic Bitcoin Reserve and Investment Act into law. This bill would provide $10 million to establish a state-operated cryptocurrency exchange.
That $10 million investment comes on the heels of an overall $338 billion biennial budget. State Sen. Charles Schwertner, who was the bill’s primary sponsor, has been one of the country’s most visible proponents for digital currencies.
Schwertner believes that bitcoin is a “critical asset for the future,” calling it “digital gold.” Additionally, the law requires an in-depth review of the state’s cryptocurrency holdings every two years. The new plan would be to keep the bitcoin reserve instead of selling it off.
The Texas Strategic Bitcoin Reserve is designed to attract the next generation of crypto and blockchain innovators and investors to Texas. It is part of Texas’ ongoing efforts to position itself for long-term economic prosperity.
"pivotal moment in securing Texas’ leadership in the digital age" - State Rep. Giovanni Capriglione
Even as supporters rejoice in the step, critics see the investment’s meager amount and narrow focus as a PR effort. To help better orient the investment, one observer offered a particularly striking counterpoint. They compared it to an individual making $80,000 a year and choosing to invest only $4 in the stock market.
Schwertner has used former President Donald Trump’s leadership in his administration as an inspiration for proposing the bitcoin state reserve. Similar legislation has been adopted by other states, such as Arizona and New Hampshire, to establish their own crypto reserves. Texas is the first of the 14 states to put state funds toward the initiative.
"We are a state that values a certain kind of tech innovation" - Bill Maurer
