Texas Introduces Bill For Gold-Based Digital Currency, Despite Objections To CBDC

JAKARTA - Two members of the legislature in Texas have introduced two identical bills to create a gold-backed country-based digital currency, despite objections from some members of the United States legislature to the introduction of a central bank digital currency (CBDC).

Senator Bryan Hughes introduced Senate Bill 2334 on March 10, while Council Member Mark Dorazio introduced House Bill 4903 on the same day, stating that a fractional amount of physical gold would be the basis for the proposed digital currency.

"Each digital currency unit issued represents a number of gold troy ounce denominations held in the mandate," the bill states, quoted by Cointelegraph.

The bill explains that after someone buys a number of digital currencies, the state treasurer will use the money received to buy the equivalent amount of gold. Then the buyer will receive a digital currency of gold purchased by the state treasurer with the money received from the buyer.

The value of a unit of digital currency must be the same as the corresponding fraction value of a golden troy ounce at the time of the transaction.

"The responsible party will keep enough gold to redeem in the form of gold all digital currency units that have been issued and have not been redeemed into money or gold," the bill states.

The bill adds that costs could be set "at any required rate" to cover the administration costs of this chapter.

Although both bills have not been approved or submitted for a vote, both state that this action will be effective from September 1, 2023.

Several members of the United States legislature recently argued against US's US recognition of CBDC.

Florida Governor Ron DeSantis stated at a press conference on March 20 that CBDC will provide "more power" to the government, as well as provide the government with a "direct view of all consumer activity".

Meanwhile, on March 21, Republican Senator Ted Cruz introduced a bill to prevent the Fed from launching CBDC "direct to consumers", stating that it is currently "more important than ever" to ensure US policies regarding digital currencies protect "financial privacy, maintain dollar dominance, and develop innovation".