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Texas is moving forward with plans to introduce a strategic bitcoin reserve. State Representative Giovanni Capriglione announced yesterday that he has introduced a bill that will allow the state to accept donations, fees and taxes in the form of bitcoin, with the condition that it be held for a minimum of five years.
“Probably the biggest enemy of our investments is inflation,” Capriglione said. “A strategic reserve of bitcoins, investing in bitcoins, would be beneficial for the state.“
Texas is the second US state to consider incorporating bitcoin into its financial strategy. In November of this year, legislation was passed to form the <a target="_blank" href="https://www.steptoe-johnson.com/news/pennsylvania-joining-the-united-states-in-proposing-a-bitcoin-strategic-reserve-implications-for-the-energy-industry/#:~:text=On%20November%2019%2C%20Pennsylvania%20Representative,its%20treasury%20reserves%20into%20Bitcoin.” target=”_blank” rel=”nofollow”>Pennsylvania Strategic bitcoin Reserve was introduced, with plans to allocate up to 10% of its treasury reserves to bitcoin.
This came after the Pennsylvania House of Representatives passed what is informally called the bitcoin Rights Bill in October, giving Pennsylvania residents the option of bitcoin as a potential payment method while safeguarding their rights to manage your own cryptocurrency.
“By enacting this legislation, we can make the Commonwealth a friendly place for blockchain innovation and give our citizens the tools to participate in the digital economy safely.” according to Rep. Mike Cabell, who sponsored House Bill 2481, or the Digital Asset Authorization Act, as it is formally known.
What does this mean for the crypto economy?
Moves to establish strategic bitcoin reserves by both Texas and Pennsylvania are positive news for the cryptocurrency economy, albeit at the state, not yet federal, level. However, Dennis Porter, executive director of NPO Satoshi Action Fundwho worked with Capriglione on the bill, is optimistic.
“The state level, in our opinion, is the best place to create political momentum for bitcoin.“he said in a <a target="_blank" href="https://www.cnbc.com/2024/12/12/texas-house-introduces-bill-to-establish-a-strategic-bitcoin-reserve.html” target=”_blank” rel=”nofollow”>interview on CNBC New York. “The best we can do is pass this legislation at the state level, giving political impetus to federal legislation.“
bitcoin, which has been experiencing a post-US election boom (reaching the $100,000 milestone), continued to rally following yesterday's announcement of the Texas Strategic bitcoin Reserve, although at the time of writing, it had fallen slightly.
“Throughout its short history, bitcoin has seen huge surges and sell-offs.” asset manager BlackRock noted in a report published earlier this week. BlackRock's iShares bitcoin Trust ETF currently manages about $53.8 billion in assets.
The Black Rock report adds that this volatility “In addition to bitcoin's unique features, it raises the question of what role it should play in wallets.The financial giant advises investors to place a maximum of 2% of bitcoin in their portfolio.
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