The state of Texas advanced its path toward financial innovation on Wednesday by passing SB 21, which establishes a state Bitcoin reserve, on third reading.
Texas, the second largest state in the United States, is establishing its own strategic Bitcoin reserve, with the passage of SB 21 in the House of RepresentativesThrough this legislation, Texas seeks to strengthen its financial resilience to inflation and economic volatility, while positioning itself as a leader in the adoption of blockchain technologies in the United States.
According to the bill, the fund will be administered by the state treasurer, who will have the authority to manage, invest, and, under specific conditions, liquidate digital assets to optimize the state's financial management. With its approval, the state will have a strategic fund dedicated to the acquisition and custody of crypto assets, with Bitcoin as the only authorized asset due to its strong market capitalization.
BUY BITCOIN WITH PEACE OF MIND HERETexas thus joins New Hampshire and Arizona, the other two states that have adopted official Bitcoin reserves, but stands out for its economic weight as the world's eighth-largest economy, which could make this initiative a model for other states to follow.
Final approval of the bill in question is pending Governor Greg Abbott's signature, having successfully passed both legislative chambers.
Texas and its confidence in Bitcoin's financial innovation
Texas has shown growing interest in cryptocurrencies, especially Bitcoin, as part of its strategy to diversify and strengthen its economy. SB 21, introduced by State Senator Charles Schwertner, reflects this vision by allowing the state to create a strategic reserve of the world's leading cryptocurrency, managed by the Comptroller of Public Accounts. This reserve would function as a state financial asset that could protect public funds from inflation and traditional market volatility.
The bill was approved with strong bipartisan support in the House of Representatives, with a vote of 101 to 42 on the third reading, having previously passed the second reading with 105 votes in favor and 23 against.
For experts like Dennis Porter, co-founder and CEO of Satoshi Action Fund, this support reflects the growing acceptance of Bitcoin as a legitimate asset for public investment in Texas. Governor Greg Abbott now has 10 days to sign the law, veto it, or allow it to go into effect without his signature.
TRADE WITH CONFIDENCE – BIT2ME LIFEWhat is Texas seeking with the creation of a strategic Bitcoin reserve?
The main objective of SB 21 law is to strengthen the state's financial resilience by diversifying its assets. By including Bitcoin in its reserves, Texas aims to protect its public finances from inflation and the volatility of traditional markets, taking advantage of this cryptocurrency's unique properties as a store of value.
This strategic reserve will operate under the administration of the Comptroller of Public Accounts, who will have the authority to acquire, safeguard, and manage the digital assets. The project also contemplates the possibility of accepting donations from both the public and private sectors to increase the reserve. To ensure security, the use of cold storage wallets and the hiring of qualified custodians will be chosen, in addition to the creation of an Advisory Committee with crypto investment experts who will guide the fund's management.
With all this, Texas seeks to protect its finances and position itself as a pioneering state in the institutional adoption of cryptocurrencies, fostering a favorable environment for technological and financial innovation.
Certificate
Basic Bitcoin Course
Basic levelStart from scratch in Bitcoin in a clear, easy, safe and quick way. This course is specially designed for beginners practically know nothing about Bitcoin.
National context: the third state with an official Bitcoin reserve
With the passage of SB 21, Texas will join New Hampshire and Arizona as one of the few states in the United States that already have an official Bitcoin reserve. Although several are exploring the integration of Bitcoin into their state treasuries, New Hampshire was the first to Approve similar legislation, followed by Arizona, which has also shown a strong commitment to integrating cryptocurrencies into its public policies.
This move places Texas in a strategic position within the national landscape, especially considering its economic and demographic size. The creation of a state Bitcoin reserve could attract investment, foster the development of the crypto industry, and solidify the state's reputation as a hub for financial innovation.
In conclusion, the passage of SB 21 in Texas represents a historic step toward integrating Bitcoin as a strategic asset into the state's public finances. This initiative seeks to strengthen financial resilience to inflation and economic volatility, while positioning Texas as a leader in technological and financial innovation in the United States.
INVITE AND WIN AT BIT2MEInvesting in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
