The policymakers in Texas have proposed an exclusive innovation with which the crypto industry could get revolutionized. They have suggested the development of a digital currency that would be backed by the well-known precious metal Gold’s market value.
In this daring step, similar bills have been proposed for the creation of a crypto token that would be backed by Gold.
Texas Policymakers Present a Bill Suggesting the Launch of a Digital Currency Supported by Gold
Nonetheless, the respective proposal has been stunning for several within the community. A few of the policymakers are even now expressing opposition to the release of a central bank digital currency (CBDC) at the state level.
Notwithstanding the objections levelled against the respective proposal, it remains to be seen whether it would be successful in driving the crypto revolution of the state.
On the 10th of the last month, Representative Mark Dorazio and Senator Hughes proposed House Bill 4903 and Senate Bill 2334. Both of the legislations advocate for the induction of a digital asset having a value equaling the amount of gold supporting it.
The respective proposal requires the comptroller to develop a digital token for the representation of a specific portion of gold’s troy ounce kept in trust to back each currency unit to be issued.
The proposal says that the comptroller should provide a direct method for the people holding digital currency for the transaction of digital currency or its assignment to others via any system of payment. Along with this, the comptroller is also directed to play the role of a fiduciary and trustee.
In this way, it will have an obligation to maintain substantial gold that would ensure the extraction of the entirety of the cryptocurrency units that are not extracted for gold or money.
The legislative proposals point toward the likelihood of specifying some charges at a rate considered essential to deal with the expenses of managing this chapter.
Though neither of the bills has been approved or moved forward for voting up till now, they declare that the implementation of the act will be carried out on the 1st of September this year. At the moment, Texas is making endeavours for the authorization of programs that target taking the state to the gold standard.
The respective projects must initially go through committee hearings in advance of getting approval to be termed as official law as well as getting authorization from the State House and Senate.
The gold standard’s reintroduction in the state of Texas indicates its interest in enhancing the trade as well as the economy within the United States to restore its former position.
Even though the implementation of the digital dollar has not taken place, New York and Miami have in advance begun testing the formal tokens’ testing as well as issuance.
This move brings to the front that the US authorities are delving into the possibilities related to a digital currency that would be backed by the government, notwithstanding the opposition posed by a few of the policymakers. Many US policymakers have recently voiced their disagreement on the launch of a CBDC.
Florida Governor Cautions over CBDC Launch, Says It Will Breach Users’ Privacy
In this way, Ted Cruz (a Republican Senator) proposed a bill targeting restricting the Federal Reserve from introducing a “direct-to-consumer” CBDC.
In the meantime, Ron DeSantis (the Governor of Florida) issued a caution saying that the central bank digital currencies (CBDCs) would offer additional power to the authorities. As per DeSantis, this would permit them to straightly oversee client operations.