On March 6, the Texas Senate passed the Bitcoin Strategic Reserve Bill SB-21 with a vote of 25 to 5. Texas State Senator Charles Schwertner, who proposed the bill, defended it in the chamber, stating that it would help Texas solidify its balance sheet with a valuable and scarce asset. He remarked, “We no longer stack dollar bills or safes like in the Middle Ages. What we have now is digital currency.”
Supporters of Bitcoin also alleviated concerns about Bitcoin directly competing with the dollar as a global reserve currency, arguing that Bitcoin is more akin to gold, serving as a hedge against inflation. Charles Schwertner added that due to central authorities’ interventions and manipulations of the money supply, the ability to spend through money printing has led to a decline in the value and purchasing power of the dollar, and this monetary inflation has weakened public confidence in the dollar.
Subsequently, SB-21 needs to be submitted to the Texas House of Representatives, where the bill will be assigned to the relevant committee for review, modification, and hearings. After passing both the House and the Senate, the bill will also need to be sent to the Texas Governor for signing in order to become law. If SB-21 ultimately takes effect, Texas will become the first state in the United States to establish a strategic reserve for digital assets.
Progress of Bitcoin Reserve Bills in U.S. States
The bill was initially introduced in January, at which time it was limited to Bitcoin and did not mention the acquisition of other digital assets. However, by February, the bill was reintroduced, expanding the eligible assets to include other digital currencies. According to statistics from bitcoinreservemonitor, a total of 35 states in the U.S. have submitted Bitcoin or cryptocurrency strategic reserve bills, but as of now, proposals from 5 states have failed to advance.
