When China’s central government banned the use and operations of blockchain in their country, it opened a great opportunity for other countries to cater to the industry’s demand. In the United States, several states are already seizing this modern-day mining rush, one of which is Texas.
The Lone Star State has recently become a preferred spot for blockchain miners because of its unregulated energy grid and cheap electricity cost. Thus, this is a perfect spot for energy-hungry blockchain mining operators.
Crypto ‘coming to a grocery store’ near you
Not only that, but the state government is also keen on catering the opportunity to boost its economy further. Because of this, Texas is becoming a mining haven for blockchain miners, a phenomenon now called the “Great Mining Migration.”
In his Twitter account, Texas Governor Greg Abbott stated, “Texas will be the crypto leader” and that the crypto will soon be “coming to Texas grocery stores.”
Meanwhile, Texas Blockchain Association President Lee Brachter explained that the state’s business-friendly climate is responsible for being blockchain’s choice.
Texas House Bills 1576 (creating a working group on blockchain technology) and 4474 (recognizing cryptocurrency by updating the Uniform Commercial Code of Texas), became effective on September 1.
Texas becomes the latest state after Rhode Island and Wyoming to recognize cryptocurrency transactions in their state.
Meanwhile, the Texas Department of Banking Commissioner sent a memorandum urging Texas banks to accommodate cryptocurrency.
Governor Abbott recently appointed four new academic experts and state officials to the working group on blockchain matters.
Furthermore, the Texas Blockchain Council is proposing to amend the constitution to recognize crypto as payment to property taxes within the state.
In Denton City, its Council has just passed an ordinance, and its leaders also signed a complex Power Purchase Agreement with Core Scientific. It is the first city in the state to lease a city-owned land near a power plant.
The said agreement will allow Core Scientific to run crypto-mining operations on the leased property for seven years with an option to renew for seven more.
Denton Mayor Gerard Hudspeth said that the city is expected to earn up to $4 million a year from sales and property tax. On the other hand, the city-owned electricity utility Denton Municipal Electric [DME], will earn up to $8 million a year.
Because of the mining “migration,” the Texas Blockchain Council revealed that its members have swelled to 70. The latest companies that opened up their mines in the state are Bitstream Mining and Core Scientific.
Bitstream Mining is a new cryptocurrency-mining venture based in downtown San Antonio that’s building a cryptocurrency “mine” in the Permian Basin.
Lee Brachter, President of the Texas Blockchain Council, announced that a Texas Blockchain Summit will be held on October 8 to further discuss its benefits to the state.