The state is one of several that are interested in maintaining cryptocurrency reserves
Yesterday, as President Trump was signing a federal cryptocurrency reserve bill, Texas lawmakers advanced a bill aimed at establishing a strategic reserve for Bitcoin, further cementing the state’s position as a key player in the digital currency space. The bill, SB-21, was passed in the Texas Senate with a 25-5 vote after a heated debate. Introduced by Sen. Charles Schwertner, the legislation seeks to help the state bolster its financial reserves with Bitcoin, a digital asset Schwertner described as “a valuable, scarce asset.”
Sen. Schwertner argued that the move was necessary due to the devaluation of traditional currency, specifically the US dollar, which he said had suffered from inflation caused by central banks’ control over currency supply. He compared Bitcoin to gold, positioning it as a hedge against the devaluation of fiat money. The senator’s comments reflect broader concerns among Bitcoin supporters about inflation and the diminishing trust in conventional currencies.
The bill initially focused solely on Bitcoin but was later expanded to include other digital assets following a February overhaul.
If Gov. Greg Abbott signs the bill, Texas will become the first US state to create a digital asset strategic reserve, making a bold statement in the evolving world of cryptocurrency. This move aligns with a growing trend among states to adopt digital assets before federal authorities act. Senator Cynthia Lummis of Wyoming, another vocal advocate for Bitcoin, has suggested that states are likely to lead the charge in creating Bitcoin reserves, given the slower pace of federal regulatory processes.
Should it pass, the Lone Star State will set a significant precedent for the future of cryptocurrency in state economies.
