Two Texas lawmakers have introduced legislation to create a gold-backed DigitalCurrency that could be enacted by the state legislature.
“The comptroller shall establish a digital currency that is backed by gold so that each unit of the digital currency issued represents a particular fraction of a troy ounce of gold held in trust,” the Texas bill states. “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,” explain the bill’s sponsors, Hughes and Dorazio.
The gold standard has long been removed from the United States, and if the bill gains traction, the U.S. Treasury Department may not approve Texas’s attempt to create a digital currency backed by gold. The U.S. government has also suppressed private creations of gold-backed alternative currencies, as it shut down Bernard von NotHaus’s
headquarters on March 18, 2007. At that time, the Federal Bureau of Investigation seized roughly nine tons of gold and silver that backed the Liberty Dollars.
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