Bitcoin could soon be a state-held asset in Texas following the approval of a new bill by the Senate. Georgetown Senator Charles Schwertner, who authored the bill, views Bitcoin as a hedge against inflation similar to traditional value stores like land or gold bullion. "Texas cannot expect to put its money in a one-percent savings account and keep up with inflation," Schwertner stated. He emphasized the importance of being forward-thinking about financial assets.
Schwertner has criticized the returns on state pension funds and advocates for investments with higher yield potential. He also mentioned that this move would signal to the federal government that Texas, along with 32 other states, is concerned about spending and national debt.
The senator described Bitcoin as a proven valuable asset suitable for inclusion in the state's investment portfolio. Cryptocurrencies are created through computer algorithms and transactions are recorded on a blockchain. Although volatile, Bitcoin's value reached $103,000 last December. Schwertner wants Texas to lead in expanding financial options regarding stores of value.
The proposed bill does not allocate funds but establishes an account under the Office of the Comptroller for asset management. Funding would be determined by lawmakers during appropriations processes. Schwertner is pursuing an initial $16 million rider for funding.
In another legislative development, Brenham Senator Lois Kolkhorst presented SB 17 before the Senate State Affairs Committee. This bill seeks to prevent foreign governments, companies, or individuals from adversarial nations from owning land in Texas due to security concerns. "The bill ensures that food, energy, and national security are protected," Kolkhorst explained.
Adversary nations are defined based on assessments by the Director of National Intelligence over three years; currently including China, Russia, North Korea, and Iran. The revised language targets individuals domiciled in these nations rather than citizens or permanent residents.
Kolkhorst noted adjustments were made since her previous attempt at passing similar legislation to avoid affecting citizens or legal residents inadvertently. The bill permits foreign investment and property leasing but restricts ownership except for residential homesteads.
Since 2023, 22 states have regulated foreign real property ownership while prohibitions on hostile agricultural land ownership passed through the US House last year.
