Texas Takes First Step To Create Its Own Currency Backed By Gold

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Texas Takes First Step To Create Its Own Currency Backed By Gold — The Republic Brief (republicbrief.com) by Kari Donovan

6–7 minutes

Texas has moved to create a Gold backed currency as Democrats support Joe Biden’s push to create more financial crises for the United States of America and to punish Americans by crippling our economic prosperity.

One supporter of the move posted his encouragement of the state’s attempt to separate from the crazy Federal government:

Paid Content:Paid Content:Paid Content:Paid Content:Paid Content:

I strongly support a Texas gold-backed digital currency that is not a CBDC. Please support/co-author HB 4903 (Mark Dorazio). Senator Hughes filed an identical bill (SB 2334). This bill is urgently needed to counter the catastrophic monetary/fiscal policy from the federal system.

— Marc Pitts ([@PittsMarc](/u/PittsMarc)) March 29, 2023

Sen. Bryan Hughes (R) introduced Senate Bill 2334 (SB2334) on March 10. Rep. Mark Dorazio (R) introduced a companion, House Bill 4903 (HB4903) on the same day. The legislation would require the state comptroller to establish a digital currency that is fully backed by gold and fully redeemable in cash or gold as well. The comptroller would also be required to create a mechanism to use this gold-backed digital currency in everyday transactions, Zerohedge reported, adding more details”:

Enactment of this legislation would create an option for people to transact business in sound money, set the stage to undermine the Federal Reserve’s monopoly on money and create a viable alternative to a central bank digital currency (CBDC).

“In establishing the digital currency the comptroller shall establish a means to ensure that a person who holds the digital currency may readily transfer or assign the digital currency to any other person by electronic means.”

The Tenth Amendment Center has been covering the move in Texas to go Gold- since at least 2015.

Fiat – paper or otherwise – has always been a ripoff, and a tool of the monster state. pic.twitter.com/DFmn0ZFMQu

— TenthAmendmentCenter ([@TenthAmendment](/u/TenthAmendment)) April 7, 2023

The state of Texas would hold gold backing the currency in trust on behalf of the digital currency holders.

“The 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.”

In practice, individuals would be able to purchase digital currency from the state. The state would then use the money to purchase gold that would be held in the Texas Bullion Depository or another secure vault. Individuals would be able to redeem their digital currency for dollars or gold.

A gold-backed digital currency would create an alternative and allow individuals and businesses to avoid a CBDC.

Digital currencies exist as virtual banknotes or coins held in a digital wallet on your computer or smartphone. The difference between a central bank (government) digital currency and peer-to-peer electronic cash such as bitcoin is that the value of the CBDC is backed and controlled by the government, just like traditional fiat currency.

At the root of the move toward a CBDC is “the war on cash.” The elimination of cash creates the potential for the government to track and even control consumer spending.

Nigeria is already trying to get people to accept its CBDC (with a great deal of resistance), and China, India, and the US have all launched pilot programs to test CBDCs.

Imagine if there was no cash. It would be impossible to hide even the smallest transaction from the government’s eyes. Something as simple as your morning trip to Starbucks wouldn’t be a secret from government officials. As Bloomberg put it in an article published when China launched a digital yuan pilot program in 2020, digital currency “offers China’s authorities a degree of control never possible with physical money.”

The government could even “turn off” an individual’s ability to make purchases. Economist Thorsten Polleit outlined the potential for Big Brother-like government control with the advent of a digital euro in an article published by the Mises Wire. As he put it, “the path to becoming a surveillance state regime will accelerate considerably” if and when a digital currency is issued.

A gold-backed digital currency would create an alternative to CBDCs.

Zero Hedge continued:

The creation of a state-issued gold-backed digital currency would create currency competition with Federal Reserve notes and undermine the Fed’s monopoly on money. It would also provide an alternative if the Federal Reserve implements a central bank digital currency.

Broadly speaking, by making gold conveniently available for regular, daily transactions by the general public, gold-backed digital currency would create the potential for a wide-reaching effect. Professor William Greene, an expert on constitutional tender, said in a paper for the Mises Institute that when people in multiple states actually start using gold instead of Federal Reserve notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a ‘reverse Gresham’s Law’ effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes).

“As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

At the time of this report, SB2334 and HB4903 had not been assigned to committees. Once they get committee assignments, they must get a hearing and pass by a majority vote before moving forward in the legislative process.

The Tenth Amendment Center contributed to this report.

republicbrief.com [Texas Takes First Step To Create Its Own Currency Backed By Gold — The Republic Brief ](https://republicbrief.com/texas-takes-first-step-to-create-its-own-currency-backed-by-gold/) by Kari Donovan 6–7 minutes Texas has moved to create a Gold backed currency as Democrats support Joe Biden’s push to create more financial crises for the United States of America and to punish Americans by crippling our economic prosperity. One supporter of the move posted his encouragement of the state’s attempt to separate from the crazy Federal government: Paid Content:Paid Content:Paid Content:Paid Content:Paid Content: I strongly support a Texas gold-backed digital currency that is not a CBDC. Please support/co-author HB 4903 (Mark Dorazio). Senator Hughes filed an identical bill (SB 2334). This bill is urgently needed to counter the catastrophic monetary/fiscal policy from the federal system. — Marc Pitts (@PittsMarc) March 29, 2023 Sen. Bryan Hughes (R) introduced Senate Bill 2334 (SB2334) on March 10. Rep. Mark Dorazio (R) introduced a companion, House Bill 4903 (HB4903) on the same day. The legislation would require the state comptroller to establish a digital currency that is fully backed by gold and fully redeemable in cash or gold as well. The comptroller would also be required to create a mechanism to use this gold-backed digital currency in everyday transactions, Zerohedge reported, adding more details”: Enactment of this legislation would create an option for people to transact business in sound money, set the stage to undermine the Federal Reserve’s monopoly on money and create a viable alternative to a central bank digital currency (CBDC). “In establishing the digital currency the comptroller shall establish a means to ensure that a person who holds the digital currency may readily transfer or assign the digital currency to any other person by electronic means.” The Tenth Amendment Center has been covering the move in Texas to go Gold- since at least 2015. Fiat – paper or otherwise – has always been a ripoff, and a tool of the monster state. pic.twitter.com/DFmn0ZFMQu — TenthAmendmentCenter (@TenthAmendment) April 7, 2023 The state of Texas would hold gold backing the currency in trust on behalf of the digital currency holders. “The 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.” In practice, individuals would be able to purchase digital currency from the state. The state would then use the money to purchase gold that would be held in the Texas Bullion Depository or another secure vault. Individuals would be able to redeem their digital currency for dollars or gold. A gold-backed digital currency would create an alternative and allow individuals and businesses to avoid a CBDC. Digital currencies exist as virtual banknotes or coins held in a digital wallet on your computer or smartphone. The difference between a central bank (government) digital currency and peer-to-peer electronic cash such as bitcoin is that the value of the CBDC is backed and controlled by the government, just like traditional fiat currency. At the root of the move toward a CBDC is “the war on cash.” The elimination of cash creates the potential for the government to track and even control consumer spending. Nigeria is already trying to get people to accept its CBDC (with a great deal of resistance), and China, India, and the US have all launched pilot programs to test CBDCs. Imagine if there was no cash. It would be impossible to hide even the smallest transaction from the government’s eyes. Something as simple as your morning trip to Starbucks wouldn’t be a secret from government officials. As Bloomberg put it in an article published when China launched a digital yuan pilot program in 2020, digital currency “offers China’s authorities a degree of control never possible with physical money.” The government could even “turn off” an individual’s ability to make purchases. Economist Thorsten Polleit outlined the potential for Big Brother-like government control with the advent of a digital euro in an article published by the Mises Wire. As he put it, “the path to becoming a surveillance state regime will accelerate considerably” if and when a digital currency is issued. A gold-backed digital currency would create an alternative to CBDCs. Zero Hedge continued: The creation of a state-issued gold-backed digital currency would create currency competition with Federal Reserve notes and undermine the Fed’s monopoly on money. It would also provide an alternative if the Federal Reserve implements a central bank digital currency. Broadly speaking, by making gold conveniently available for regular, daily transactions by the general public, gold-backed digital currency would create the potential for a wide-reaching effect. Professor William Greene, an expert on constitutional tender, said in a paper for the Mises Institute that when people in multiple states actually start using gold instead of Federal Reserve notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money. “Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a ‘reverse Gresham’s Law’ effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes). “As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.” At the time of this report, SB2334 and HB4903 had not been assigned to committees. Once they get committee assignments, they must get a hearing and pass by a majority vote before moving forward in the legislative process. The Tenth Amendment Center contributed to this report.

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