365Crypto
Texas Backs Bitcoin as a Strategic Asset
The Texas Senate just took a big step into the world of digital money. Lawmakers voted 25-5 to pass a bill (SB-21) that would create a Bitcoin reserve for the state. If Governor Greg Abbott signs it into law, Texas will be the first state with its own stash of Bitcoin.
State Senator Charles Schwertner, who pushed for the bill, argued that Bitcoin is a valuable and scarce asset. He told fellow lawmakers, “We don’t have stacks of dollar bills in safes like the old days. What we have now is digital currency.”
Bitcoin vs. the U.S. Dollar?
Some lawmakers worried this bill would make Bitcoin a rival to the U.S. dollar. Supporters said that’s not the case. Instead, they compared Bitcoin to gold—something people use to protect their money from inflation.
Schwertner went further. He blamed inflation on government money printing, saying it lowers the dollar’s value. “The ability to spend by printing more money has caused the dollar to fall in worth,” he said.
Texas Tweaks the Bill
Originally, SB-21 was all about Bitcoin. But in February, lawmakers broadened the bill to allow for other digital assets.
Why the change? It came after President Trump’s executive order in January, which asked a commission to study the idea of a national digital asset reserve. Texas lawmakers saw an opportunity to stay ahead.
States Move Faster Than Washington
Wyoming Senator Cynthia Lummis, a long-time Bitcoin supporter, thinks states will adopt Bitcoin reserves before the federal government. She recently told investors in New York that Washington moves too slow due to all its red tape.
Lummis introduced the Bitcoin Act of 2024, hoping to push the federal government toward digital asset reserves. But for now, it looks like states—led by Texas—are moving first.
Footnotes:
- Bitcoin Reserve – A stockpile of Bitcoin held by a government or institution as a long-term investment.
- Digital Asset – A broad term for digital currencies, including Bitcoin, Ethereum, and other cryptocurrencies.
- Inflation – When the value of money drops, causing prices for goods and services to rise.
