Texas Takes a Big Step into the Future: A Bitcoin Reserve
In a major move, the Texas Senate has passed a bill to create a special fund for Bitcoin, called a Bitcoin reserve. This is a big deal because it means Texas is one of the first states to officially support cryptocurrency like Bitcoin. Let’s learn more about this new law and what it means.
What is the Bill About?
The bill, called Senate Bill 21 (SB 21), was introduced by a state senator named Charles Schwertner in January 2025. At first, it was only about Bitcoin, but later it was changed to include other types of digital money, called cryptocurrencies, that are worth at least $500 billion. The goal of the bill is to create a special fund outside the regular state treasury, so the state can buy, sell, or invest in Bitcoin and other cryptocurrencies.
Why is the Bill Important?
People who support the bill say that having a Bitcoin reserve is like having a safety net for the state’s money. Bitcoin is like gold in the digital world because there’s only a limited amount of it, and it can be used as a way to protect money from losing value due to inflation. Senator Schwertner thinks Bitcoin is a good investment because it’s different from other types of money and can be used in new ways. Some people also see this bill as a way for Texas to show that it’s a leader in the world of cryptocurrency and to say that it doesn’t agree with the way the federal government handles money.
What Happened When the Bill Was Voted On?
The Texas Senate voted 25 to 5 in favor of the bill, which means most senators supported it. This vote shows that many people in Texas think it’s a good idea to have a Bitcoin reserve. It’s also interesting because the president of the United States, Donald Trump, is thinking about doing something similar for the whole country. If Texas successfully creates this Bitcoin reserve, it could inspire other states to do the same.
How Will the Reserve Be Funded and Managed?
Senator Schwertner plans to ask for around $20 million to start the reserve. The money will be managed by a group of experts in cryptocurrency investing, who will be chosen by the state comptroller. This way, the reserve will be managed by people who know a lot about cryptocurrency.
What Does This Mean for Texas?
The Texas Senate’s vote to create a Bitcoin reserve is a big deal because it shows that Texas is serious about using new types of money and technology. By creating this reserve, Texas is not only trying to protect its money but also showing that it’s ready for the future. Now, the bill will go to the Texas House for more discussion, and everyone is waiting to see if Texas will successfully create this Bitcoin reserve and become a leader in the world of cryptocurrency.
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