Texas Lawmakers Introduce Bill Proposing to Establish a Gold-Backed Digital Currency

Texas Lawmakers Introduce Bill Proposing to Establish a Gold-Backed Digital Currency

Two Republican lawmakers from Texas, 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. The 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 circumvent a central bank digital currency (CBDC). S.B. No. 2334 Introduces the Establishment of a Digital Currency Backed by Gold in Texas

In recent times, U.S. lawmakers have been discussing the reimposition of the gold standard, and just recently, Georgia representative Marjorie Taylor Greene advocated for its return. Specific bureaucrats have also been vehemently against 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 (S.B. No. 2334) that would enable the state to establish a gold-backed digital currency.

“The comptroller shall establish a digital currency that is backed by gold so that each unit of the digital currency issued represents a particular 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 suppressed 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 controlled by 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.” Tags in this story alternative currency, assign, Bernard von Nothaus, CBDC, central bank digital currency, comptroller, Digital Currency, e-gold, electronic means, FBI, Federal Bureau of Investigation, Gold & Silver Reserve Inc., Gold Standard, gold-backed, Legislation, legislative appropriation, liberty dollar, Lone Star State, Marjorie Taylor Greene, policymakers, politicians, private creations, Robert F. Kennedy Jr., Ron DeSantis, state legislature, state-run, Ted Cruz, Texas, Texas lawmakers, transfer, trust, U.S. Treasury Department

What do you think about Texas’s 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 subject 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. Report: Binance US Struggles to Secure Banking Partner Amid Regulatory Crackdown on Crypto Industry NEWS | 2 hours ago NFT Sales Rise 7.28% to $179.64 Million in 7 Days, Nakamigos Takes the Top Collection Spot  NEWS | 8 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSaudi Arabia Strengthens Bond With China by Joining SCO Bloc as Dialogue Partner Next articleReport: Binance US Struggles to Secure Banking Partner Amid Regulatory Crackdown on Crypto Industry Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike

The 12th president of the Federal Reserve Bank of St. Louis, James Bullard, thinks the U.S. central bank can increase the benchmark bank interest rate by 75 basis points this year. Bullard believes the Fed could raise rates to 3.5% ... read more.Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin