Texas, known for its spirit of freedom, has boldly stepped into the world of digital technology. The state authorities, starting with legislators and ending with Governor Greg Abbott, implemented the project of creating a state bitcoin reserve, officially approving it with bill SB21. Ideally, bitcoin should help Texas be more financially stable and protect against inflation. It is important that the reserve will be completely independent of the state budget. No loans for ordinary expenses, and bitcoins will be kept as an inviolable strategic reserve.

The conservative approach of the legislators is obvious. To be included in the reserve, assets must meet strict requirements, namely, their market value must be above 500 billion dollars. At the moment, the only contender is bitcoin (BTC), which essentially makes the fund dependent on one cryptocurrency.
The management system has been thought out to the smallest detail: the Treasurer of the State of Texas will be responsible for managing the fund, but important decisions will be made taking into account the opinion of a special advisory board. It will include three well-known experts in the field of crypto investments, whose names have not yet been disclosed.

The reserve will not be idle: according to the law, it will be replenished with the help of airdrops, voluntary donations, as well as due to the fact that the capital will grow due to network forks and investments. Everything will be as open as possible: every two years, a detailed report will be published on what the reserve consists of and its results.

The adoption of SB21 looks like a logical continuation of the House of Representatives Law 4488, which was previously signed by Governor Abbott. This law is needed to ensure that bitcoin held in reserve is not accidentally spent on some other needs of the state. This is as a protection against sudden policy changes and budget priorities revision.

Texas now joins Arizona and New Hampshire, becoming the third state to approve a bitcoin reserve law. But Texas went the furthest.: He did not just allow such a reserve, but decided to invest public money in it and create a separate management system for it.

But not everything, of course, is so simple with these innovations. Constant rate hikes are a headache for the state budget. Misunderstandings in the laws (difficulties between the SEC and the CFTC) do not make it clear what the definition of this asset is. And protecting the state's crypto reserves from hackers is generally a task comparable to ensuring the security of the country. Therefore, Texas still faces a lot of challenges that they will need to overcome.