Thoughts on Texas's Gold Backed Currency Proposal

Thoughts onTexas's Gold Backed Currency Proposal

The Texas House committee passed a bill on May 2 that aims to establish 100% reserve gold and silver-backed transactional currencies. This legislation would allow people to conduct business using sound money, potentially challenging the Federal Reserve's monopoly on currency and providing an alternative to a central bank digital currency (CBDC). Introduced by Rep. Mark Dorazio, the bill has bipartisan support and requires the state comptroller to create gold and silver specie, along with digital currencies fully backed by these metals. The comptroller would ensure these currencies can be used as legal tender and easily transferred. The physical backing would be stored in the Texas State Bullion Depository. The goal is to encourage broader use of gold and silver in everyday transactions, potentially reducing the Fed's influence over money. This move is part of a larger effort in Texas to promote sound money, including making gold and silver legal tender. The legislation is seen as a step towards undermining the Federal Reserve's control over currency and could offer an alternative to CBDCs. The bill will now move to the Calendars Committee for further consideration.

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