Crypto News: Texas House Committee Advances Bill to Create Gold-Backed Digital Currency
Texas has taken a significant step towards approving a bill that would create a 100% gold-backed digital currency. The proposed legislation, currently being discussed by a Texas House committee, would establish an electronic system for transactions and payments with the digital currency, allowing users to execute redemptions for the gold backing it.
The bill, known as HB4903, was introduced on March 10 by Representative Mark Dorazio and has received support from 42 sponsors. If passed into law, the Texas state comptroller would establish a digital currency backed by gold, with each unit representing a specific fraction of a troy ounce of gold held in trust.
To ensure the digital currency remains 100% backed by gold, the state comptroller or a third-party would hold custody of the gold, maintaining an equal amount of gold as the digital currency issuance. Users could freely transact with the currency to make payments, with redemptions processed in gold specie or money.
While implementing the bill is estimated to cost between $25 million and $100 million, grassroots support for the proposed law is high. Several Texans have signed a 78-page document in favor of the sound money law.
The proposed bill is part of a growing trend among states to establish alternatives to the US dollar as a transactional and reserve currency.
Arkansas recently passed a bill making gold and silver legal tender, allowing citizens to use gold specie to legally pay debts without having tax implications. 23 more states are currently involved in similar legislative efforts.
If passed, the Texas bill would offer an alternative form of currency that could potentially compete with the US dollar, which has faced growing criticism due to inflation concerns.
While the proposed legislation is still in its early stages, it could have significant implications for the future of digital currency in the United States.
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