Texas passed a law to create a Bitcoin reserve, potentially adding Ether in the future. The bill, signed by Governor Abbott, allows for a special fund to hold cryptocurrencies. To qualify as a reserve asset, a crypto must have a market cap of $500 billion over 24 months – Bitcoin meets this.
Compared to Texas, other states like Arizona and New Hampshire have also passed laws for crypto reserves. Arizona’s fund includes seized crypto, while New Hampshire allows treasury investments in crypto with over $500 billion market cap. Texas is unique in using taxpayer money for its reserve.
Texas’ law follows the federal government’s move under Trump to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile. Policies were laid out to use confiscated crypto for the reserve, with officials exploring budget-neutral ways to buy Bitcoin. The state is now working on implementing the law with regulated custodians.
Read more at Cointelegraph.com
1. Bitcoin reaches new all-time high of $60,000, gaining 15% in a week. Market capitalization exceeds $1 trillion for the first time. Experts predict continued growth as institutional investors show increased interest in cryptocurrency.
2. Ethereum also surges to a record high of $2,000, marking a 150% increase in 2021. The rise is attributed to increased adoption of decentralized finance (DeFi) applications and the upcoming Ethereum 2.0 upgrade.
3. Tesla CEO Elon Musk announces that customers can now purchase vehicles using Bitcoin. The company invested $1.5 billion in the cryptocurrency earlier this year. This move is seen as a major endorsement of Bitcoin’s legitimacy as a form of payment.
4. Visa announces plans to enable cryptocurrency transactions on its network, allowing customers to settle transactions using USDC stablecoin. This development aims to make cryptocurrency more accessible and mainstream for everyday transactions.
5. PayPal reports strong Q4 earnings, with revenue increasing by 12% year-over-year to $6.1 billion. The company’s CEO credits the growth to increased adoption of digital payments during the pandemic and the integration of cryptocurrency services on its platform.: Texas Lawmaker Behind State’s Crypto Reserve Bill: Ether may be Next