Important news in the last hours for Bitcoin: Texas is submitting a proposal to allow the oldest and most prestigious crypto to be an authorized state investment.
The news is also reported by Watcher.Guru‘s official Twitter account, which reads:
JUST IN: 🇺🇸 Texas Government proposes allowing #Bitcoin as an authorized investment for the state.
— Watcher.Guru (@WatcherGuru) January 18, 2023
Texas’ intentions with regard to Bitcoin: the latest news
It is well known that Texas has always been at the forefront of blockchain and Bitcoin adoption. In fact, although many other states and countries have shown skepticism toward cryptocurrencies, Texas has never failed to show its support for the industry.
The state has also been a hub for several Bitcoin mining companies and is currently promoting, advancing, and providing a platform for Bitcoin, which it considers a cutting-edge innovation regarding the future.
Breaking news, to renew its commitment to Bitcoin, Texas has released a report to members of the state legislature that focuses on ensuring a strategic statewide approach to expanding the blockchain industry in the state.
In addition, the report and general plan also put forth a proposal to allow Bitcoin to be an authorized state investment.
Unfortunately, we know that even though cryptocurrency and blockchain technology have been prevalent for more than a decade, several governments and states still view cryptocurrencies as a gamble or too risky.
Therefore, the release by the Texas government of an 84-page report on the development of the blockchain industry is in itself an excellent example of how forward-thinking the state is in terms of understanding and adopting the technology.
In fact, the proposal to allow Bitcoin as an authorized investment for the state will be a turning point for Texas, as it will surely attract global attention and represent the state as an avid supporter of Bitcoin.
It also discusses the usefulness of cryptocurrencies as a reserve currency for the government and cites examples of other states that have made Bitcoin legal tender. The report also discusses how for Texas to hold cryptocurrency would be a powerful indicator of how the state’s interests align with those of the state’s economic players.
Texas report on the news for Bitcoin
The report is written by the Texas Work Group on Blockchain Matters and, in a comprehensive plan, proposes to expand the blockchain industry in Texas in accordance with House Bill 1576, passed by the 87th Texas Legislature.
This report examines the current blockchain industry in Texas and the state’s current academic, educational and workforce needs necessary to grow the industry.
It also identifies areas of economic growth and development opportunities provided by blockchain technology. The report includes legislative and policy recommendations to encourage industry expansion and establish regulatory and legal clarity to establish Texas as a leader in blockchain technology and the cryptocurrency space.
The bill, authored by State Representative Tan Parker, directed the working group to a specific purpose, as the report itself states:
“to develop a master plan for the expansion of the blockchain industry in this state and to recommend state policies and investments related to blockchain technology.”
It also requested that a report including the general plan and any findings or recommendations be submitted to the legislature. This report is submitted in accordance with the requirements of HB 1576.
Furthermore, again reading what the Texas report states, one can see that Texas has seen tremendous growth in blockchain technology and the cryptocurrency industry in recent years.
In fact, the nature of cryptocurrency is designed to not be regionally confined with constraints because, like the Internet itself, one of the main advantages is the accessibility it allows for developers and users.
However, Texas has become home to young cryptocurrency companies that align with the country’s ethos of “self-empowerment” and distrust of excessive regulation.
In particular, following China’s ban on cryptocurrency mining in September 2021, Texas became the target recipient for major cryptocurrency mining companies such as Blockcap and Riot Blockchain.
This migration was partly the result of low electricity prices in Texas, but also thanks to the legislature paving the way for the creation of a regulatory framework to accommodate a thriving, if primitive, cryptocurrency industry.
Bitcoin legal tender: where?
There are currently only two countries in the world where Bitcoin has been officially declared legal tender. The first ever was El Salvador, a small Central American state.
Not having its own national currency, the country uses the US dollar as its legal tender fiat currency, and in September 2021 it also brought in Bitcoin alongside the dollar as its second legal tender currency.
The second was the Central African Republic (CAR), a medium-sized state in Central Africa. The country uses the so-called CFA Franc, issued by the central bank of France, as its fiat currency, and in April it decreed that Bitcoin will also be legal tender within it.
However, there are currently other states that seem to be intent on doing something similar. Of all those that seem intent on encouraging the spread of Bitcoin in their countries the one that is certainly most interesting is Mexico.
In any case, there are also many other countries where, although not legal tender, Bitcoin is commonly accepted as a form of payment, though it is not forced and not used by everyone. In this respect, the first to recognize Bitcoin as a currency was Japan, by far one of the richest countries in the world.