Texas lawmakers are considering introducing a Strategic Bitcoin Reserve Act, according to the non-profit advocacy group Satoshi Action Fund (SAF). SAF CEO Dennis Porter spoke at the North American Blockchain Summit in Texas, revealing that he had spoken with a lawmaker who was “starting conversations about introducing strategic Bitcoin reserve laws” in Texas.
Porter emphasized that creating a strategic Bitcoin reserve in Texas could have significant implications since the state has the eighth largest economy globally, with a GDP of $2.4 trillion in 2022. Furthermore, there has been some movement regarding this concept at the state level, as evidenced by US Senator Cynthia Lummis’ bill to create a US Bitcoin Strategic Reserve.
Strategic Bitcoin reserves at the national and state levels would not only protect against inflation but also secure Bitcoin mining in the United States. Porter highlighted that Bitcoin mining operates with very thin profit margins, making it vulnerable to outside actors such as Russia or China, who could potentially drive down the price of Bitcoin and devastate American mining companies.
He argued that being present in the market, buying and selling Bitcoin, could help protect against external influence and serve as a shock absorber for US-based mining companies. Porter likened the Bitcoin reserve to historical decisions that helped shape modern America, such as the acquisitions of Louisiana, Florida, and Alaska.
Additionally, the idea is gaining momentum internationally, with Polish presidential candidate Sławomir Mentzen promising to create a Bitcoin reserve in Poland if he wins next year’s elections.