3/11/22 Governor Abbott Interview
We had a wonderful opportunity to interview Governor Greg Abbott, the Governor of Texas. He shared insights into what makes Texas the leading country for Bitcoin and why he is such a big fan of Bitcoin. He also shared his vision for a blockchain future. I hope you enjoy!
Full transcript of the interview below
Lee Bratcher [00:00:00] I'm Lee Bratcher, I'm the president of the Texas Blockchain Council. I had the chance a few days ago to sit down with Texas Governor Greg Abbott to talk about how Texas is becoming the jurisdiction of choice for bitcoin and blockchain and specifically for bitcoin mining. If you want to learn more about the TBHQ and what we do. Check us out online at Texas BlockchainCouncil.org and follow us on social media. I hope you enjoy the interview!
Lee Bratcher Governor, thanks for being here today and a pleasure to have this conversation with you. You have been making Texas a world leader in a lot of industries and we can now add bitcoin and blockchain to that long list. So, we want to ask you, what has Texas been doing to generate that kind of momentum, to create tech, to make Texas a leader in these industries?
Governor Abbott [00:00:45] In a way, this is just stereotypical Texas, Texas. We have a yearning to be number one in everything. And we over the past few decades, we've been growing dramatically with regard to tech in general. And now Texas has been the leader both in tech, as well as innovation. Texas has been the leading exporter, for example, of technology for nine years in a row. And this is the latest iteration of technology in a way the latest iteration of innovation. And we all know we're in the top half of the first inning of this. Texas is getting involved early on in this process because we see the future of what bitcoin and blockchain means to the entire world. Texas wants to be the centerpiece of that. So we are promoting it, we are advancing it. But I will say we're providing the platform for those who are involved in blockchain. For those who are involved in bitcoin to make sure that they're going to have a location that can come to that does not have the sense of friction that comes along with high regulation. That makes the ease of business far better, and it promotes that innovation. We will continue advancing opportunities for businesses and sectors like this. Because Texas, again, our mantra is we want to be the home of innovation and bitcoin and blockchain is the cutting edge of innovation in the world right now.
Lee Bratcher [00:02:15] Absolutely. And the ethos of Texas is one of independent thinking and a “can do” attitude aligns really well with the spirit of bitcoin. So, tell us a little bit more about what you have been doing to make Texas bitcoin country.
Governor Abbott [00:02:30] Well, in addition to making it open and inviting for people here, this past session we passed some laws to make it far better. We created a working group to make sure that we're going to be focused on the type of legislation that will make it more inviting. Understand this and that is when Texas engages in legislation, we don't want to be over regulatory. We're kind of anti-regulation, but we want to provide an infrastructure to make sure that blockchain and bitcoin will be able to succeed. Same as the kind of reaction that some people saw happen earlier this week, when the president came out and said they wanted to provide some regulatory framework, that was a positive because it didn't look like it was going to be over onerous and regulatory. We want to do the same thing. We want to make sure that there are some guidelines that are going to be assistive to it. But also, we are looking forward into things like virtual money and virtual currency in whatever form that may take. We know that the world is in a situation of transition right now as it concerns things like money, currency, banking and finance and that blockchain and bitcoin are in the vanguard of that. We want to create a framework that will allow all of that to excel here.
Lee Bratcher [00:03:57] Governor, with the demand response program and the world leading Texas energy industry, what have you seen the bitcoin mining industry able to do when they come in and they partner with oil and gas. They partner with executives at ERCOT in the demand response capabilities of curtailing that load. How has that benefitted Texas in the grid?
Governor Abbott [00:04:20] First, you mentioned demand response, which is kind of a sophisticated knowledge about the way this whole process works and your viewers may not know what you're talking about. Let me explain to that and plug it in to what's going on in the grid. When you referred to demand response, generally speaking, what that refers to in Texas, for your viewers who may not know... We have an open, independent power grid, most other states have a heavy, regulated power structure. They have a singular utility program in their state, whereas Texas doesn't have that. We have a free market system in the state of Texas, where people get to purchase power from the lowest cost power provider. Now when we do that, there can be so much demand for power at times of high need for power, such as in a heavy winter storm. There needs to be a demand response so that people who don't really need power for a few hours or a day or so, they can ratchet back on their power demand. So that's the demand response, so that bitcoin, those who make bitcoin or dairy and whatever the case may be listen. A few hours of lost power is not going to destroy their business, whereas it could with the hospital or something like that. So, here's the way that it works. With all the bitcoin miners, the theory miners, etc. and the state of Texas, it is good for our power grid system in this sense. It creates more demand on an ongoing basis and that provides the investment incentive for power generators to come invest more to create more power in the state of Texas. Working at the same time are the bitcoin miners which are able to ratchet back if there is a need for surplus power to keep essential services online. And so that works hand in hand and is great for the bitcoin miners to have access to. If not the lowest cost, one of the lowest costs of power in the entire world. While at the same time being able to generate even more power generation, that will lower the cost even more.
Lee Bratcher [00:06:35] Absolutely, when we had that increased generation, that increased base load and the peaks are getting shaved off the demand. Off of the debt curve, that can only be beneficial for Texas power prices and consumers will, because of that increase supply, have lower power prices.
Governor Abbott [00:06:53] Exactly right. What bitcoin miners are doing, because they are increasing the amount of power that supply here, the cost of that power is going down. Bitcoin miners will benefit from that, which is one reason why we have so many of them here, because the cost of power is so low. But their participation in the market will drive those energy prices down even more, which is going to be good for bitcoin miners and good for everybody in the state of Texas.
Lee Bratcher [00:07:23] Absolutely. When we think about the future of the state of Texas; entrepreneurs, venture capitalists and private equity moving to Texas because of this climate that we have. The innovative climate from the East Coast and the West Coast, do you see that trend continuing? And if so, how is California going to have any entrepreneurs left in five years? They're all going to be here in Austin.
Governor Abbott [00:07:50] Listen, someone's going to be the last person to turn out the lights in California because it's moving very rapidly here. To give you an example over this last year or twenty twenty-one, is Texas over past decade or so has been number one in the United States for the most new economic development projects, and Texas receives the annual award that goes to states for having the most economic development projects. Last year was the most prolific year we’ve ever had, especially as a concern headquarter moves, which takes a lot of money, a lot of time, a lot of effort for a company to actually move its headquarters. Last year, we doubled the second-best year that we've ever had in the number of headquarters actually moving to Texas. Most of those headquarter moves were businesses that are on the cutting edge of innovation. Easy example would be Tesla moving its headquarters here, but there's so many more like this. So, we continue to promote an environment that attracts innovators and entrepreneurs. If you go back, historically, Texas was an entrepreneurial state to begin with. When you had entrepreneurs from other states coming here to found and begin the state of Texas. From our founding until today, we have created a pro entrepreneur environment that is accelerating. In some other states like California, for example, entrepreneurs are in it for their ability to generate new innovations, but they also want to make money. When you're being taxed so extraordinarily high in a state like California, you're not able to take home as much of the money as you are making. Same for your employees, your ability to hire employees and staff ET is tied in part to the tax system, but maybe even more than that. When you look at the regulatory system in some other states, it’s so onerous that time is money. Texas has the capability of moving at the speed of business. One quick example in that regard, going back to Tesla, Elon wanted to create a massive Gigafactory, right? And he knew that it would take 5 to 10 years to be able to do that in California. He was able to build more than a mile long Gigafactory for the process of just having flat ground rate. In only 18 months in the state of Texas. So, our ability to cut the regulations get businesses to come here and stay here and grow here. Lessing alleges this, and that is why the Texas approach is different than other states. We approach it in one meaningful regard and we partner with these businesses that are coming here to use California as a model. California leeches off of the businesses that are there. They've tried to get money from them to pay for their programs, etc. We're not here to leech off of business. We're here to help a business succeed because we know that when businesses come here and succeed, the state will succeed. We will continue to partner with those businesses and assist those businesses in growing. That is why we're seeing so many businesses and people choose to come to Texas.
Lee Bratcher [00:11:00] Governor, thank you for being the champion for innovation, for bitcoin and for Texas. Ladies and gentlemen, Governor Greg Abbott, a champion of innovation and reform.
