The second largest US state by population has launched a new crypto reserve and stocked it with millions of dollars in Bitcoin (BTC).
Texas has become the first state in America to purchase Bitcoin and hold it as a reserve, the Associated Press reports.
Acting Texas Comptroller Kelly Hancock said in a statement:
“The Texas Legislature has passed a bold mandate to create the nation’s first strategic Bitcoin reserve. Our goal for implementation is simple: build a secure reserve that strengthens the state’s balance sheet. Texas is once again leading the way, and we are proud to do so.”
The state legislature has approved a total of $10 million in Bitcoin spending, a small portion of the state’s total $338 billion annual budget.
The state’s first purchase of Bitcoin took place on November 20 at a price of $91,336 per coin.
Lee Bratcher, chairman of the Texas Blockchain Council, believes the investment will pay off in the long run.
“It’s only sixteen years old, so the volatility, both up and down, will decrease over time. We still want it to retain some of those volatility characteristics because that’s how we can see those upward moves that will benefit the government’s finances in the future.”
Arizona and New Hampshire have also passed laws to create similar Bitcoin treasury reserves, but have not yet purchased any digital assets.
Meanwhile, Wisconsin and Michigan bought crypto as investments in pension funds last year.
Bitcoin is trading at $92,311 at the time of writing, up 2.5% in the last 24 hours.
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Featured image: Shutterstock/U2M Brand/Panuwatccn