Texas may create its own currency, which could be used by more than just Texans.

Texas Proposes Digital Currency Backed by Gold and Silver

Imagine being able to purchase gold or silver and use it for any legal purpose, not just in Texas but anywhere in the world. That could soon be a reality if a proposal in the state’s Senate moves forward. The law would allow Texas to mint pure gold or silver coins based on weight and issue debit cards backed by gold or silver. The value of the gold or silver would be held at the Texas Bullion Depository, and as the value of the precious metals rises, so does the spending power of the account holder.

A Hedge Against Inflation and a Signal to the Feds

The proposal is partly aimed at avoiding a federal digital dollar, a concept under consideration by the Biden administration. Republican state Sen. Bryan Hughes, the proposal’s sponsor, said it is a response to worries about bank failures, inflation, and the possible creation of a federal Central Bank Digital Currency. “We know that the dollar, of course, lost more value last year — in 2022 — than any year since 1980,” Hughes said.

Republican state Rep. Mark Dorazio, who drafted a bill in the House that is similar to the Senate plan, said the proposal was “one way to protect Texans from out-of-control inflation.” However, some voices urge caution in any type of digital currency.

Opportunity for Texas

Kevin Freeman, an investment expert, said if Texas develops a feasible plan, it could dominate the market for digital currency. “This is the first bill in modern times that addresses all of the issues and problems,” Freeman said.

Meanwhile, the Biden administration “has been closely examining the implications of, and options for, issuing a CBDC.” Republican Sen. Ted Cruz of Texas has proposed legislation to stop that idea in its tracks, saying, “The federal government has no authority to unilaterally establish a central bank currency. This bill goes a long way in making sure big government doesn’t attempt to centralize or control cryptocurrency and instead, allows it to thrive in the United States.”

Would You Use a Gold-Based Digital Currency?

The proposal would allow anyone in the world to purchase gold or silver to start an account and use that for any legal purpose. So, would you use a gold-based digital currency?

• Yes, I think it’s a great idea to have a currency backed by precious metals.
• No, I prefer to stick with traditional currency.
• Maybe, I would need more information before making a decision.

Let us know your thoughts in the comments below!

Jack Davis is a freelance writer who joined The Western Journal in July 2015 and chronicled the campaign that saw President Donald Trump elected. Since then, he has written extensively for The Western Journal on the Trump administration as well as foreign policy and military issues.