Texas House To Promote 100% Gold-Backed Digital Currency Bill
- The Texas House of Representatives committee is promoting a bill that aims to issue a 100% gold-backed digital currency.
- Redemptions of the currency will be processed in physical or monetary form in gold, with the State Comptroller or a contracted third party administering these redemptions.
- Implementing the bill is estimated to cost the state $25 million in a limited system.
The Texas House of Representatives committee is pushing for the creation of 100% gold-backed digital currency.
The bill, known as HB4903, was presented on March 10 by Representative Mark Dorazio and had 42 sponsors. It is now being considered by the House State Affairs Committee before being voted on by the House.
If passed, the state government would establish an electronic infrastructure enabling users to trade and pay with the digital currency, as well as conduct redemptions for the gold or tokens that support it.
According to the law, the state comptroller would create a digital currency that is backed by gold such that each unit of digital currency produced reflects a certain fraction of a troy ounce of gold held in trust. Similarly, the government will need to develop an electronic system that would enable people to freely deal with this money in order to make payments.
Currency redemptions will be conducted in physical or monetary form in gold, with the State Comptroller or a contracted third party handling the administration. The bill’s implementation is expected to cost the state $25 million in the case of a restricted system and up to $100 million in the case of a full transactional system.
Yet, the bill has gained grassroots support, as indicated by a 78-page document submitted on April 26 and signed by numerous Texas in favor of this tough money legislation.
In its current form, the bill establishes that the Texas state comptroller will provide custody of the gold backing the digital currency or that it can be assigned to a third party, who must maintain the same amount of gold as the digital currency’s issuance, making it a 100% backed digital currency.
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