Texas Becomes First US State to Allocate Public Funds for Bitcoin

On Saturday, Texas became the first US state to allocate public funds for Bitcoin purchases. Governor Greg Abbott signed Senate Bill 21 (SB21), establishing the Texas Strategic Bitcoin Reserve.

Key Developments

Texas officially recognizes Bitcoin as a store of value.
The bill aims to use Bitcoin as a hedge against inflation.
Texas is the third state to create a Bitcoin reserve but the first to use public funds.
This move may increase demand for Bitcoin among investors and government entities.

State Senator Charles Schwertner stated that Texas should evaluate high-performing assets like Bitcoin for its financial strategy.

Other states such as Arizona and New Hampshire have created Bitcoin reserves without public funding.

The establishment of a publicly-funded reserve signals long-term commitment to Bitcoin by Texas.

Market Implications

As state-backed crypto holdings gain traction, diversified crypto assets are increasingly viewed as both stores of value and investment opportunities. Caution is advised due to market volatility.