Texas Lawmakers Propose Establishing a Digital Currency Backed by Gold – Bitcoin News


Two Republican legislators from Texas, Senator Bryan Hughes and Representative Mark Dorazio, have presented a bill to create a digital currency that is backed by gold. The lawmakers believe that this currency can be beneficial to the Lone Star State and, as an alternative digital currency, it can provide Texas residents with a way to avoid a central bank digital currency (CBDC).

S.B. No. 2334 Proposes Establishing a Digital Currency Backed by Gold in Texas

In recent times, U.S. legislators have been discussing the reintroduction of the gold standard, and just recently, Georgia Representative Marjorie Taylor Greene advocated for its return. Specific politicians have also been critical of the creation of a central bank digital currency (CBDC), and people such as Ted Cruz, Ron DeSantis, Robert F. Kennedy Jr., and Greene have spoken out against CBDCs. Now, two Texas lawmakers have introduced a bill (S.B. No. 2334) that would enable the state to establish a gold-backed digital currency.

“The comptroller shall introduce a digital currency that is backed by gold so that each unit of the digital currency issued represents a specific fraction of a troy ounce of gold held in trust,” the Texas bill states. “The trustee shall maintain enough gold to provide for the redemption in gold of all units of the digital currency that have been issued and are not yet redeemed for money or gold,” explain the bill’s sponsors, Hughes and Dorazio.

The gold standard has long been removed from the United States, and if the bill gains traction, the U.S. Treasury Department may not approve Texas’s attempt to create a digital currency backed by gold. The U.S. government has also repressed private creations of gold-backed alternative currencies, as it shut down Bernard von NotHaus’s Liberty Dollar headquarters on March 18, 2007. At that time, the Federal Bureau of Investigation (FBI) seized roughly nine tons of gold and silver that backed the Liberty Dollars.

In the same year that the Liberty Dollar was shut down, a U.S. federal grand jury also closed down the e-gold digital currency project operated by Gold & Silver Reserve Inc. (G&SR). However, the gold-backed digital currency proposed in the Texas bill would be operated by the state government. Despite this, 13 different states have attempted to create alternative, state-run, gold-backed currencies over the last 14 years, but all of these attempts have been unsuccessful.

The proposed gold-backed digital currency in Texas would be held in a trust under the control of the state’s comptroller. The bill notes that “certain money and deposits held in the trust are not subject to legislative appropriation.” Furthermore, the Texas lawmakers note that by “establishing the digital currency, the comptroller shall establish a means to ensure that a person who holds the digital currency can easily transfer or assign the digital currency to any other person electronically.”

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What do you think about Texas’s attempt to create a digital currency backed by gold and how it could possibly affect the future of alternative currencies in the United States? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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