Pierre Rochard, vice president of research at Riot Platforms, testified yesterday before a Texas Senate Committee Committee supporting Senate Bill 21, which will establish the state's Bitcoin reserve.
His testimony on February 18 details the role of the proposal in strengthening the state's finances amid economic uncertainty, distinguishing itself from Bitcoin's verifiable ledger and other digital assets. Supply was emphasized as an important attribute that defines the
Roshard, who has written extensively on Bitcoin and highlighted how he contributed to open source projects since studying in 2012 at the University of Texas Austin, explained that state preparations can serve as a hedge against future slump .
Rochard has made it possible to fully audible monetary policy with Bitcoin's open source code and independently verifiable monetary policy, and the issuance process with discretionary issuance models for other cryptocurrencies such as “ETH and XRP.” is in contrast.
He also described the power of independence and multisig wallets in the storage of wealth of decentralization and democratization using Bitcoin.
In his remarks, he emphasized a finite supply of Bitcoin (the number of more than 21 million coins of cargo will be issued), with investors being more likely to hold coins as non-diluted assets on public balance sheets. He emphasized that it contributes to the possibilities.
Texas Bitcoin Reserve Act
The proposed law eliminates the previous $500 million annual cap on Bitcoin acquisitions, thereby giving state officials greater flexibility to adjust their investment levels according to market conditions. Masu. SB 21 also allows investments in other digital assets if it maintains an average market capitalization of over $500 billion for 12 months.
Following legislative documents, the Texas Secretary's office will employ cold storage and regular audits to maintain a safe and transparent system and oversee the reserve.
Legislative advocates, including Li Dan Patrick, have made the bill a priority, claiming it will diversify national assets and stimulate the local economy.
In areas such as Millam County, where Riot's Rockdale facilities are based, Rochard claims that mining facilities have become major contributors to local employers and public school funding through increased sales tax revenues. I'm doing it. These factors are considered important in enhancing economic resilience and providing offsets to potential federal financial pressures.
Pros and cons for Texas Bitcoin Reserve
Rochard highlighted the built-in legislative monitoring mechanism, arguing that robust management protocols and regular audits reduce these risks. His remarks were framed as a tactical financial safeguard and as a strategic move to strengthen the state's autonomy that manages its financial future.
The bill also represents the state's broader trend to reassess its approach to digital assets with a war chest that exceeds $23 billion. Texas will join several other states investigating legislative measures aimed at integrating cryptocurrencies into their fiscal strategy.
Advocates argue that such measures can reduce reliance on traditional financial institutions, where past revocations in transparency and accountability have been undermined. By leveraging Bitcoin's decentralized design and immutable ledger, lawmakers argue that state preparations could serve as reliable financial offsets.
Rochard's testimony ultimately strengthened the idea that while Bitcoin takes on inherent market risks, its unique characteristics provide a strong case for inclusion in the state's financial plans. The Texas Senate Committee is expected to vote for the measure in March 2025.
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