United For Liberty

A Texas Senate committee considered a proposal Monday that could give Texans the ability to purchase everyday goods with a new digital currency backed by Texas gold.

Senate Bill 2334 proposes to:

  • Establish a new gold and silver based digital currency through the office of the Texas Comptroller of Public Accounts.
  • Back each unit of issued digital currency with a corresponding fraction of a troy ounce of gold or silver held in trust.
  • Allow for individual accounts to be created at the Texas Bullion Depository that could be used to conduct transactions.

The proposal by Sen. Bryan Hughes, R-Mineola, would give people the option to deposit gold or silver into the state’s bullion depository and have access to spend from their account, just like with a debit or credit card.

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Proponents of the bill hailed the creation of a state-backed digital currency as a way to hedge against inflation and as an avenue to further assert states’ rights in the ongoing conversation of digital currency regulation.

The potential to further use the state’s bullion depository, which the Legislature created in 2015, and the possibility for Texas to be on the forefront of a developing state-backed digital currency market were points of additional incentive laid out to lawmakers Monday.

Senator Bryan Hughes of District 1 looks on as he listens to the testimony of people who are against SB 12 and SB 1601. The Senate State Affairs committee is taking up a controversial bills SB 12, SB 1601 which is  an anti-drag show bill, and several criminal justice bills. Sitting left Taryn Taylor and sitting far right Drew Tedford listens during the meeting.

However, concerns about the reliability and possible volatility in value of digital currencies, such as Bitcoin, gave Sen. Juan “Chuy” Hinojosa, D-McAllen, pause on the idea of creating a digital currency in Texas.

Hughes differentiated his proposal to that of existing digital currencies, saying the value of Texas’ currency would not be subject to the same uncertainty as the program would be backed by tangible precious metals.

Full article https://www.statesman.com/story/news/politics/state/2023/05/09/texas-senate-bill-2334-proposal-new-digital-currency-texas-gold-purchase-everyday-goods/70195299007/