Texas, which is the world’s eighth – largest economy with a value of $2.6 trillion, is advancing plans to create a government – backed bitcoin reserve. On May 20, the Texas Senate approved Senate Bill 21 (SB 21) in its second house reading with a vote of 105 to 23, reflecting rare bipartisan support. It now heads to a third reading, and if passed, it will be sent to the governor for approval.
SB 21 aims to establish a strategic bitcoin reserve (SBR), which would make Texas one of the few US states to explore direct exposure to bitcoin at the government level. Ahead of the vote, lawmakers introduced an amendment allowing other digital assets to be included in the reserve, but only if they meet strict requirements. To qualify, a digital asset must maintain a $500 billion market cap for at least two years. Bitcoin is the only digital asset that meets this threshold currently, with a market value of more than $2 trillion.
The implications of such a move are significant. If Texas successfully adopts a bitcoin reserve, it could set a precedent for other states and even countries, potentially influencing the global narrative on cryptocurrency adoption and regulation. Additionally, it may have a profound impact on the financial structure of Texas, enhancing its fiscal stability and potentially attracting more investment and innovation in the digital economy field. However, some also question whether the volatile price of bitcoin can truly enhance the state government’s fiscal stability and how to ensure the safe storage and management of bitcoin.
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