Texas has made history by becoming the first US state to establish a publicly funded Bitcoin reserve. This decision, signed by Governor Greg Abbott, allocates $10 million for cryptocurrency purchases.
First Public Bitcoin Reserve in the US
The signed law mandates the creation of a Bitcoin reserve that will be managed independently from the state’s main treasury. The reserve will be overseen by the state comptroller with a three-member crypto advisory committee. The fund may grow through forks, airdrops, profits, or public donations in addition to direct purchases. A detailed public report will be published every two years.
Legal Protections for the Reserve
In conjunction with Senate Bill 21, Governor Abbott also signed HB 4488, which ensures that the Bitcoin held by the state is not accidentally mixed into the general budget. This means Texas aims to keep its Bitcoin holdings safe and preserved.
FAQs
1. **Why did Texas invest $10 million in Bitcoin?** Texas aims to position itself as a crypto-friendly state and hedge against fiat currency risks. 2. **Could Texas start accepting Bitcoin for taxes or state services?** Not currently, but this reserve lays the groundwork for such innovations in the future. 3. **How does Texas's Bitcoin reserve differ from similar proposals in Arizona and New Hampshire?** Unlike Arizona and New Hampshire, which passed laws without allocating actual funds, Texas has committed $10 million to its reserve. 4. **What is HB 4488, and how does it protect the Bitcoin reserve?** HB 4488 guarantees that Texas’s Bitcoin reserves remain separate from the general state budget, protecting them from unauthorized changes.
Changes in Texas may inspire other states looking to modernize their financial strategies while highlighting Texas's commitment to playing a significant role in the future of crypto finance.
