Gold-Backed Digital Currency Proposed By Texas Lawmakers
Texas lawmakers have proposed a digital currency that is backed by gold. This is quite a different move because most US regulators in other parts of the country want a digital currency backed by the US dollar.
The Gold Standard for Crypto
This was the decision of two senators Bryan Huges and Mark Dorazio who brought in Senate Bill 2334 and House Bill 4903 respectively. As per the decisions of these two senators, the digital currency’s value must be represented with that of a fraction of a troy ounce of gold. This means that whenever a person buys the digital currency, the comptroller must also buy the same amount of gold with the money received.
Moreover, the trustees must also hold enough gold in case any person wants to redeem their digital currency to maintain liquidity. Also, people can exchange their digital currency for physical gold as well.
Bill not yet passed
The Bill still needs to be passed. The voting for the said bill is set to take place on September 1st 2023. This may seem to be a challenge as several US lawmakers are against issuing the Central Bank Digital Currency (CBDC).
The proposed CBDC could give the people of Texas an alternative to the fiat currency and it could prove to be of great value to those who are skeptical of the government’s monetary system and the monopoly that lies in it.