The Bitcoin strategic reserve may not be a new concept in politics, but in fact it was only popularized by Donald Trump, who promised during the election campaign that he would create one in the USA. Local authorities are working on such a solution at the state level.
Bitcoin strategic reserve
The idea of gathering by the state or its Territorial Units BTC went to the first pages of newspapers and the top portals thanks to Donald Trump. And this despite the fact that Salvador reached for her earlier. This country recognized Bitcoin as a legal means of payment in September 2021 and systematically increases its bitcoin reserves to more or less time. Even now, with the opposition of the International Monetary Fund (IMF), with whom Salvador signed a contract regarding financial support, President Nayib Bukele emphasizes that his country does not intend to give up investments in Bitcoin and plans to continue purchasing this cryptocurrency in the future.
Let’s return to the USA. During the election campaign, Donald Trump promised that he would create a similar reserve in the USA. And in fact, he recently signed an executive regulation regarding the creation of a Bitcoin strategic reserve. Only that at the same time he disappointed BTC fans a bit, because the reserve is not based on cyclically bought cryptocurrencies, but its foundation is BTC, which Americans have taken over criminals over the years. The reserve is to be powered by new coins, but also only those taken over by cybercriminals or scam creators.
What do the United States do?
Parallel to federal initiatives, a lot happens at the state level. Today, over 20 US states are working on legislation on creating their own Bitcoin reserves.
What are the advantages of having such a reserve? First of all, it is about diversification of assets: including Bitcoin in state reserves allows the diversity of the investment portfolio. This reserve is also a protection against inflation: Bitcoin, often called “digital gold”, can protect against the loss of the purchasing power of traditional currencies. In addition, having Bitcoin in reserves can strengthen the financial position of the state, especially in the face of global economic changes and the growing adoption of cryptocurrencies.
It cannot be overlooked that the US states compete with each other just like member states in the European Union (EU) – those that invest in cryptocurrencies may become more attractive for companies from the technology and financial industry, which promotes the development of the local economy and collecting capital to a given region.
How is the law created in the US?
Before I go further, it is worth explaining how the law arises in the US states. The process of adopting law at a state level varies depending on the state, but usually runs according to a similar scheme.
The first stage is the legislative initiative. The bill may be submitted by:
- members of state legislature (usually state senators or members of the Chamber of State Representatives),
- governor (some states allow the governor to initiate bills),
- citizens as part of the legislative initiative (e.g. by collecting signatures in the States where there is such a possibility).
Then the work in the state legislatu begins. Each state has a two -isk legislature (State Senate and State House of Representatives) (except for Nebrask, which has only one room) the process looks like this:
- First reading – introduction of the law to one of the chambers,
- Legislative Committee – the Act is forwarded to the relevant committee that analyzes it, may change and recommend further procedure or rejection,
- Second reading and debate – if the committee approves the project, there is a debate and the possibility of making corrections,
- Voting – if the law goes in one chamber, goes to the other chamber, where a similar trial undergoes.
Then the arrangements between the chambers begin. If both chambers approve the act, but in different versions, the final text must be developed, which is re -voted. The final decision belongs to the governor, which if he signs the law, it becomes the law. He may also veto the act – then the legislature may try to break the veto by a qualified majority (usually 2/3 of the votes).
How do work in individual states go?
At Bitcoinreservitor.com, you can follow how work is going on introducing reserves in individual states. The authorities of 5 states rejected the proposals to create a reserve. In over 20 works are ongoing.
Texas proceeds
Texas is the last state that dealt with the subject of the BTC reserve. The Senate adopted a bill on the strategic reserve on March 6. This happened after the debate in which State Senator Charles Schwertner, who presented the bill, argued that he would help Texas add a valuable and rare asset to his balance. In turn, Governor Dan Patrick issued a statement in which he reported that “President Trump clearly stated that he intended to make the United States the world capital of cryptocurrencies.”
His (i.e. Trump) visionary leadership in the field of Bitcoin and digital assets paved the path of fast American innovations, and Texas is a leader. I promised that the priority would be to create a BTC reserve in Texas to strengthen Texas’s leadership in the digital era. Today, the Texas Senate kept this promise, adopting (bill) SB 21 votes of both Republicans and Democrats to create a Bitcoin reserve in Texas. Some call Bitcoin “digital gold”, and I think that its limited supply and decentralized character make it a key advantage for the future of Texas.
Creating a Bitcoin reserve in Texas is a bold step that should imitate other states. I am on the side of President Trump and I hope that Texas will become the epicenter of the digital future of America
– Patrick said.
The reserve will contain bitcoins and other cryptocurrencies with market capitalization of at least USD 500 billion.
Conclusions
Bitcoin becomes an element of state policy: although the strategy of collecting BTC by the state is not new, it was only Donald Trump’s actions that made this concept to gain wide interest. It is worth adding, however, that the US is approaching the topic carefully. The federal Bitcoin reserve is not about actively buying cryptocurrency, but about the use of acquired funds from criminals. This indicates the conservative strategy of the government towards BTC. However, the initiative is reflected at the state level. Over 20 states are working on their own regulations regarding Bitcoin reserves.
The economic benefits of the existence of the reserve are obvious. The United States see in Bitcoin a way to diversify reserves, protect against inflation and an element of a competitive strategy that can help them compete for technological investments. Texas, when adopting the bill on the BTC reserve, not only strengthens its position as a proctoplawlut state, but also shows that this trend may be continued by subsequent regions of the US.
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