Texas House Advances Gold-Backed Digital Currency Bill – The Texas House committee has initiated the process of approving a bill that proposes the establishment of a digital currency backed entirely by gold. The bill, currently under discussion, aims to provide a platform for electronic transactions using this currency and also permit users to redeem it for gold coins. If passed into law, the bill identified as HB4903 and introduced by Representative Mark Dorazio on March 10, would create a system for this purpose.
With the support of 42 sponsors, the bill is ready to be voted on by the House after exiting the House State Affairs Committee. According to the bill, the state comptroller will be required to create a digital currency backed by gold, where each unit of the currency represents a specific fraction of a troy ounce of gold held in trust. Additionally, the state must devise an electronic platform to enable citizens to carry out transactions and payments using this currency without restrictions.
People Also Read: Russia Monitoring US Economy Amid Possible Default
The bill, in its present form, mandates that the Texas state comptroller will be responsible for safeguarding the gold that backs the digital currency. Alternatively, a third party can also be entrusted with this responsibility provided that they maintain the same amount of gold as the issuance of the digital currency, thereby ensuring it is 100% backed. The redemption of the currency can be processed either in gold specie or in money, with the state comptroller or a third party contracted for this purpose overseeing the process.
The estimated cost of implementing this bill is $25 million for a limited system, whereas a more functional transactions system could cost up to $100 million. Despite facing opposition, the bill has garnered significant support from the public, as demonstrated by a 78-page document submitted on April 26, signed by numerous Texans advocating for the adoption of this sound money law.
Furthermore, various states are exploring options to create alternatives to the U.S. dollar as a transactional and reserve currency. For instance, on April 11, Arkansas passed a law that authorizes gold and silver as legal tender, enabling its residents to pay off debts and obligations with gold specie without incurring tax liabilities. Similar legislation is also being pursued by 23 other states.