On Thursday, December 12, 2024, Texas made history by introducing legislation to establish the largest strategic Bitcoin reserve in the U.S. Texas House Bill 1598 was introduced during an X Spaces event, hosted by Republican State Representative Giovanni Capriglione and Dennis Porter, founder of the nonprofit Satoshi Action Fund (SAF).
How the Strategic Bitcoin Reserve Will Work
Representative Capriglione explained how the bill would enable the Texas Treasury to accept Bitcoin (BTC) donations. He also noted that the Texas State Comptroller would authorize state agencies to accept Bitcoin for state payments. The initiative will allow Texans to use Bitcoin for tax payments and fees.
The Bitcoin in the state’s strategic reserve will be held for at least five years before it can be used. Lee Bratcher, President of the Texas Blockchain Council, clarified that all Bitcoin in the reserve would be donated by Texas residents and U.S. companies. No taxpayer funds will be used to buy Bitcoin.
Strategic Importance for Texas
Texas has the eighth-largest economy globally and ranks as one of the top exporters. “This strategic Bitcoin reserve is huge for Texas,” said Dennis Porter. Texas’ economy surpasses Russia’s, making it a leader in the global movement for Bitcoin reserves.
Representative Capriglione added that the reserve could stabilize the state’s finances. “The bill will help Texas counter inflation’s negative effects,” he explained. Porter highlighted that a Bitcoin reserve would provide much-needed financial support for states, especially those struggling with inflation.
Possibility of Paying Taxes in Bitcoin
One interesting aspect of the bill is the potential for Texans to pay their taxes using Bitcoin. Representative Capriglione believes that many Texans will be eager to pay taxes with Bitcoin. “I expect a rush of people wanting to pay their taxes in Bitcoin,” he remarked. The Bitcoin used for tax payments would then go into the state’s strategic reserve.
Bratcher sees this as the first step toward fully integrating Bitcoin into Texas’ economy. He added, “Eventually, Texas may make Bitcoin legal tender, depending on federal action.”
Bill’s Likely Passage
Texas House Bill 1598 still needs to be passed into law. However, it has strong support from Texas lawmakers. Bratcher believes the bill has a high chance of passing. He said, “This bill has received significant backing from elected officials.”
Capriglione expects a senator to sponsor the bill soon. He is confident that Governor Abbott will eventually sign it. If passed, Texas would become the first state to implement a strategic Bitcoin reserve, setting a precedent for other U.S. states.
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