Texas legislators propose a state digital currency supported by gold
The bills provide that the trustee must keep a quantity of gold equal to the total value of all digital currency units produced and in circulation.
Two Texas legislators have presented proposals that would establish a state-issued digital currency backed by gold, amid opposition from certain federal legislators who are concerned about the prospect of adopting a digital currency issued by the federal government.
On March 10, Senator Bryan Hughes and Representative Mark Dorazio submitted Senate Bill 2334 and House Bill 4903, respectively, proposing a digital currency backed by a fractional equal quantity of solid gold.
According to the plan, the comptroller would utilize the funds from digital currency transactions to acquire physical gold at the market rate.
If the money is used to buy gold, the purchaser would get digital currency equivalent to the value of the gold.
At the moment of exchange, one unit of digital money must be worth the same as the corresponding fraction of a troy ounce of gold.
“The measure stipulated that the “trustee shall maintain sufficient gold to provide for the redemption in gold of all units of the digital currency that have been issued but are not yet redeemed for money or gold.”
In addition, a charge “at any rate necessary” to support administration expenses of this chapter may be created.
Both measures claim that the legislation will go into effect on September 1, 2023, but none has been approved or put to a vote.
Recently, a number of US senators have spoken out against the country adopting a CBDC. Florida Governor Ron DeSantis said during a news conference on March 20 that CBDCs provide the government “more power” and give the government “a direct view of all consumer activities.”
On the other hand, Republican Senator Ted Cruz introduced legislation on March 21 to prevent the Federal Reserve from launching a “direct-to-consumer” CBDC. He did so because he believes it is “more important than ever” for the United States to ensure that its policy on digital currencies safeguards “financial privacy,” keeps the dollar dominant, and promotes innovation.