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Texas lawmakers have proposed a bill that would establish a state Bitcoin reserve for taxes, fees, and donations. The bill aims to encourage Bitcoin miners to use digital assets to pay taxes and hedge against inflation.
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The Texas Legislature on Thursday introduced a bill that would create a Strategic Bitcoin Reserve that would allow the state to collect taxes, fees and donations in Bitcoin and hold them for at least five years, CNBC reports.
Republican state Rep. Giovanni Capriglione announced the proposal during an X Spaces event and framed it as a hedge against inflation.
“Probably our biggest investment enemy is inflation,” Capriglione said. “A strategic Bitcoin reserve invested in Bitcoin would be a win-win for the state.”
The bill, titled “An Act Concerning the Establishment of a Bitcoin Reserve in the Texas Treasury and the Control of Virtual Currency by Government Agencies,” does not outline any direct plans for purchasing Bitcoin.
Texas is the second-largest economy in the United States, ranks eighth in the world, and has the highest concentration of Bitcoin miners in the country.
This law aims to encourage miners to use digital assets to pay taxes.
Capriglione said the goal is to expand the bill as much as possible. He explained that the initial phase allows for flexibility and discretion, but could be further strengthened with the support of other MPs.
The proposal follows Pennsylvania's introduction of a similar bill last month.
Up to 10 more states and four countries are considering similar measures, said Porter, who helped draft the Texas bill.
Bitcoin has rallied more than 45% since the US presidential election, thanks in part to President Trump's campaign promise to create a national strategic Bitcoin reserve.
Several states have already enacted crypto-friendly laws.
Oklahoma, Louisiana, Montana, and Arkansas have passed laws protecting mining rights, self-storage, node operations, and peer-to-peer transactions.
Satoshi Action Fund has introduced 30 bills, including Pennsylvania's Strategic Bitcoin Reserve proposal.
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