On Thursday, the Lone Star Senators approved a bill that would create a strategic Bitcoin reserve, waiting for another vote signed by the lawmakers and the governor.
Supporters argue that Bitcoin Reserve serves as a hedge against inflation in the world’s eighth largest economy.
The bill will wait for a vote in the Texas House of Representatives before heading to Texas Governor Greg Abbott for signing.
According to the Bitcoin Reserve Monitor, Texas is increasing in number of states assessing strategic Bitcoin reserves. Last month, South Dakota lawmakers voted to postpone a similar strategic reserve bill, citing the long-term price volatility of Bitcoin.
The Texas Senate vote sparked a massive debate about its feasibility. What we have is digital currency,” said Texas Sen. Charles Schwartner, one of the bill’s co-sponsors.
“Texas can’t expect to put money in a 1% savings account and keep up with inflation,” he added. “We need to move forward as individuals when it comes to investing in financial assets and those financial assets.”
“I will argue and announce that, in this case, the US dollar, the ability to spend money by printing money will decrease and decrease in value due to the central intervention and manipulation of the supply of currency,” explained Schwartner.
Texas is courting Bitcoin mining following its escape from China by providing a slate of economic incentives. Miners will benefit from deregulated power grids and payments from state grid operators, Texas Electric Reliability Council (ERCOT) to shut down during periods of high demand.
“We’re promoted (crypto), we’re moving forward with that,” Gov. Governor Greg Abbott said at the 2022 crypto event.