Governor Greg Abbott Wants Texas To Become The Bitcoin Capital Of America

Matt Lillywhite
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"Texas will be the crypto leader," said Gov. Greg Abbott said on Twitter. "Cryptocurrency is now coming to Texas grocery stores."

Lee Brachter, president of the Texas Blockchain Association, said, "Texas is poised to become the jurisdiction of choice for blockchain innovation for several reasons including; the business-friendly climate that has been cultivated in Texas for many years, the efforts of our Texas Blockchain Council working alongside lawmakers like Representative Tan Parker and Senator Angela Paxton to create legal and regulatory frameworks that allow for entrepreneurs to innovate."

After being signed into law by Governor Greg Abbott in June of 2021, Texas House Bills 1576 and 4474 went into effect last month. House Bill 1576 creates a blockchain technology working committee in Texas. HR 4474 was a law that modified the Uniform Commercial Code to recognize bitcoin. Meanwhile, the Texas Department of Banking Commissioner released a letter allowing all Texas state-chartered banks to hold bitcoin.

According to Investopedia, "Bitcoin mining is the process by which new bitcoins are entered into circulation." But, to be successful, the process needs a large amount of low-cost electricity. Because of its inexpensive energy, China used to be the world's mining hub, with most of it taking place there. However, local governments in China began shutting down bitcoin mining earlier this summer as the country tried to establish its own digital currency.

After the clampdown, the bitcoin hash rate (the amount of computing power needed to create bitcoin) was cut in half. As a result, miners have been combing the world for inexpensive electricity, with many picking Texas as their destination of choice. For example, BIT Mining, a company located in Shenzhen (China), is reportedly going to invest $26 million in Texas to develop a data center, while Bitmain, based in Beijing, is expanding its Rockdale plant. This little town of 5,600 people used to be home to one of the world's largest aluminum factories, but now it's the next worldwide center for bitcoin mining.

At the time of writing, the price of Bitcoin has reached an all-time high of $67,000. And with the cryptocurrency gaining traction worldwide (with some countries even adopting it as a national currency), the future looks extremely bright for decentralized finance.

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This article is for informational purposes only and should not be considered financial advice. Please consult a financial advisor before investing in stocks, cryptocurrency, or any other asset class.

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