Despite opposition from some US senators against the introduction of a central bank digital currency (CBDC), two Texas lawmakers have submitted identical proposals to establish a state-based digital currency backed by gold.
On March 10, Senator Bryan Hughes submitted Senate Bill 2334, and on the same day, Representative Mark Dorazio introduced House Bill 4903, both of which stated that the new digital currency would be backed by a fractional equivalent amount of genuine gold.
The bills stated:
“Each unit of the digital currency issued represents a particular fraction of a troy ounce of gold held in trust.”
The comptroller would utilize the funds collected to acquire an equivalent amount of gold once a person purchases a specific amount of digital currency, according to the measure.
The buyer would then get a digital currency equivalent to how much gold the comptroller bought with the money they gave them.
A unit of digital currency must be worth the same amount at the moment of the transaction as the relevant fraction of a troy ounce of gold.
The legislation said:
“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.”
The possibility of establishing a fee "at any rate necessary" to cover the expenses of administering this chapter was introduced.
Both bills say that this act will go into effect on September 1, 2023, despite neither having been passed or put to a vote.
Recently, a number of US senators have argued against the country establishing a CBDC.
In a March 20 press conference, Florida Governor Ron DeSantis claimed that CBDCs would give the government "more power" and provide it "a direct view of all consumer activities."