Texas Governor Greg Abbott has signed a bill that officially initiates the creation of a strategic Bitcoin reserve in the state.
Creation of Bitcoin Reserve in Texas
Senate Bill 21 (SB21) allows for the establishment of a state-managed fund that will hold Bitcoin, aimed at enhancing the state's financial resilience and serving as a potential hedge against inflation.
How the Reserve Will Be Managed
The reserve will operate independently from Texas' general treasury system. It will be managed by the Texas Comptroller of Public Accounts, aided by an advisory committee of three crypto investment professionals.
Growing Popularity of Bitcoin among Public Companies
The number of public companies adopting Bitcoin as an asset continues to rise. For instance, Nakamoto Holdings, founded by an advisor to US President Donald Trump, raised $51.5 million through a private placement to increase their Bitcoin holdings.
The signing of the Bitcoin reserve bill makes Texas the third US state to officially implement such legislation, highlighting the increasing interest in cryptocurrencies among state entities and companies.
