Two Texas lawmakers have introduced identical bills for creating a state-based digital currency backed by gold, a move that comes despite objections from several United States lawmakers against introducing a central bank digital currency (CBDC).
Senator Bryan Hughes introduced Senate Bill 2334ย on March 10, and Representative Mark Dorazio introduced House Bill 4903ย on the same day, stating that a fractional equivalent amount of physical gold would back the proposed digital currency.
โEach unit of the digital currency issued represents a particular fraction of a troy ounce of gold held in trust,โ the bills stated.
It was explained that once a person purchases a certain amount of digital currency, the comptroller would use that money received to buy an equivalent amount of gold.
The purchaser would then receive digital currency equal to the amount of gold that the comptroller purchases with the money received from the purchaser.
It was emphasized that the value of a unit of the digital currency must be equal to the value of the appropriate fraction of a troy ounce of gold at the time of the transaction.
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โThe trustee shall maintain enough gold to provide for the redemption in gold of all units of the digital currency that have been issued and are not yet redeemed for money or gold,โ the bill also stated.
It was added that a fee may be established โat any rate necessaryโ to cover the costs of administering this chapter.
Although neither of the bills have been passed or presented for a vote, both stated that this act will take “effect September 1, 2023.โ
Several United States lawmakers have arguedย against the U.S introducing a US-backed CBDC in recent times.
Florida Governor Ron DeSantis stated in a March 20 press conference that CBDCโs would grant โmore powerโ to the government, adding that it provides the government โwith a direct view of all consumer activities.โ
Meanwhile on March 21, Republican Senator Ted Cruz introduced a bill to block the Fed from launching a โdirect-to-consumerโ CBDC, stating that itโs โmore important than everโ to ensure U.S. policy on digital currencies protects โfinancial privacy, maintains the dollarโs dominance and cultivates innovation.โ
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