Texas could soon have its own gold-backed digital currency, if two lawmakers manage to pass their bill. Unlike traditional cryptocurrencies, this currency would be backed by physical gold held in reserve for each unit in circulation. Lawmakers even set an effective date for this new currency, September 1, 2023.
Texas Lawmakers Propose Gold-Backed Digital Currency
Texas has long been crypto-friendly, so much so that Salvadoran President Nayib Bukele even opened his second Bitcoin embassy there. Today, the Texas state reaffirms its commitment to financial independence by proposing the creation of a gold-backed state digital currency.
Last March 10, Senators Bryan Hughes and Representative Mark Dorazio introduced two identical bills, namely the Senate Bill 2334 and the bill 4903 of the House, respectively. The legislative proposals provide that each unit of digital currency issued must have a corresponding amount of physical gold held in reserve.
Thus, buyers of this currency will receive an equal amount of the new digital currency in exchange for the amount of gold purchased by the controller with their money. This measure aims to ensure the value of the gold-backed digital currency, enhancing its stability and credibility.
Texas lawmakers aim to become financially independent and break free from the grip of the US dollar. However, some lawmakers oppose the introduction of a central bank digital currency (CBDC). They fear that this will lead to absolute government control over citizens’ personal finances and undermine privacy.
Despite these concerns, Texas lawmakers remain confident and have clarified that this law will take “effect on September 1, 2023”. Nevertheless, the possibility of imposing a tax to cover the costs of administering the project raises concerns among some Texans.
This bill comes after Texas authorities tabled another bill in January to accelerate Bitcoin adoption. If lawmakers are successful in passing this new proposal, it will strengthen Texas’ position in the crypto sector.
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