Two Republican Texas lawmakers, Senator Bryan Hughes and Representative Mark Dorazio, have introduced legislation to create a gold-backed digital currency that could be enacted by the state legislature. Policymakers believe that this currency could greatly benefit the Lone Star State, and as an alternative digital currency, it could provide Texas residents with the ability to bypass a central bank digital currency (CBDC).
SB #2334 introduces the creation of a gold-backed digital currency in Texas
In recent times, US lawmakers have discussed reimposing the gold standard, and most recently Georgia Rep. Marjorie Taylor Greene argued for its return. Specific bureaucrats have also vehemently opposed the creation of a central bank digital currency (CBDC), and politicians such as Ted Cruz, Ron DeSantis, Robert F. Kennedy Jr., and Greene have opposed CBDCs. Now two Texas lawmakers have introduced a bill (SB No. 2334) that would allow the state to establish a gold-backed digital currency.
“The Comptroller will establish a gold-backed digital currency so that each unit of digital currency issued represents a particular fraction of a troy ounce of gold held in trust,” the Texas bill states. “The trustee will retain sufficient gold to enable the redemption in gold of all units of the digital currency that have been issued and are not yet redeemed for cash or gold,” the project sponsors explain. of Law, Hughes and Dorazio.
The gold standard has long been removed from the United States, and if the bill gains traction, the US Treasury Department may not approve of Texas’ attempt to create a gold-backed digital currency. The US government has also suppressed private creations of gold-backed alternative currencies, shutting down Bernard von NotHaus’ business. Liberty Dollar headquarters on March 18, 2007. At that time, the Federal Bureau of Investigation (FBI) seized approximately nine tons of gold and silver that backed the Liberty Dollars.
The same year the Liberty Dollar was shut down, a U.S. federal grand jury also farm 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 run by the state government. Despite this, 13 different states have attempted to create alternative, state-run, gold-backed currencies for the past 14 years, but all of these attempts have failed.
The proposed gold-backed digital currency in Texas would be held in a trust controlled by the state comptroller. The bill notes that “certain funds and deposits held in the trust are not subject to statutory appropriation.” Additionally, the Texas lawmakers note that in “establishing the digital currency, the controller must 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.” .
What are your thoughts on Texas’ attempt to create a gold-backed digital currency and how it could potentially affect the future of alternative currencies in the United States? Let us know what you think about this topic in the comments section below.
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