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Breaking: Texas House Introduces Bill to Establish Strategic Bitcoin Reserve
12/13/2024 01:24
Texas proposes strategic Bitcoin reserve, allowing taxes and fees in Bitcoin, aiming to combat inflation and lead crypto adoption nationwide.
Key Notes
- Texas proposes a bill for a strategic Bitcoin reserve, allowing Bitcoin for taxes, fees, and donations.
- Representative Capriglione advocates Bitcoin adoption, combating inflation, with held reserves for at least five years.
- Texas, home to top US Bitcoin miners, aims to lead in cryptocurrency-backed financial innovation globally.
Texas has introduced a bill to establish its own strategic bitcoin reserve, according to CNBC report. Proposed by Republican State Representative Giovanni Capriglione, the bill would let Texas accept Bitcoin for taxes, fees, and donations. If passed, this initiative would position the state as a trailblazer in cryptocurrency adoption and financial innovation.
The bill aims to stabilize Texas’ economy while combating inflation, a significant concern in today’s economic climate. Capriglione expressed confidence in the initiative during an X Spaces event, stating:
“Probably the biggest enemy of our investments is inflation. A strategic bitcoin reserve, investing in bitcoin, would be a win-win for the state.”
Notably, the proposal doesn’t require Texas to purchase bitcoin directly. Instead, bitcoin received through the program would be held for a minimum of five years. Capriglione hopes to secure broad support by building flexibility into the legislation, emphasizing that adjustments could be made to strengthen the bill over time.
“This initial step is to allow some optionality and flexibility on it but if I am able to get support from other legislators, we will make it even stronger,” said Capriglione.
Texas Pushes Bitcoin for State Taxes
Texas stands out in the cryptocurrency sector. Home to the largest concentration of Bitcoin miners in the US, the state also boasts the second-largest economy in the country and the eighth-largest globally. Capriglione’s vision includes encouraging miners and businesses to pay taxes in Bitcoin, potentially bolstering Texas’ financial and technological standing.
The proposal timing aligns with increasing interest in a national strategic Bitcoin reserve. President-elect Donald Trump’s crypto-friendly campaign promises have spurred excitement, with bitcoin prices surging over 45% in recent months. However, skepticism remains about whether the US government will adopt such a reserve anytime soon.
Despite doubts, states like Texas are determined to lead the charge. Pennsylvania recently became the first to propose a similar reserve, and discussions are underway in 10 states and four countries to follow suit. Capriglione collaborated with Porter, an expert who has supported bitcoin-related legislation in multiple states, to draft the Texas bill.
Crypto-Friendly Policies Gain US Momentum
Momentum for cryptocurrency-friendly laws is growing. In July, Trump pledged to preserve all government-held bitcoin as part of a strategic reserve, signaling potential national policy shifts. Meanwhile, states like Oklahoma, Louisiana, and Montana have enacted laws safeguarding cryptocurrency activities such as mining and peer-to-peer transactions.
While the idea of a US bitcoin reserve remains uncertain, it has ignited global discussions. According to Porter, the concept could inspire other nations to adopt similar measures regardless of US action. For Texas, the proposed Bitcoin reserve could mark a bold step toward financial innovation and reinforce its leadership in the digital economy.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
