Despite opposition from some US lawmakers to introducing a central bank digital currency (CBDC), two Texas senators have submitted similar proposals to establish a state-based digital currency backed by gold.
According to bills presented on March 10 by Senator Bryan Hughes (Senate Bill 2334) and Congressman Mark Dorazio (House Bill 4903), the proposed digital currency would be backed by a fractional equivalent amount of genuine gold.
It was specified that each unit of the digital currency represented a particular fraction of a troy ounce of gold that was held in a trust.
According to the bill, the comptroller would use the funds collected to acquire an equivalent quantity of gold after a person buys a particular amount of digital currency. The comptroller would use the funds provided by the purchaser to buy the corresponding quantity of gold. In return, the purchaser would receive an equivalent amount of digital currency. It should be noted that the value of the digital currency unit should correspond to the appropriate fraction of an ounce of troy gold at the time of the transaction.
The bill requires the trustee to possess sufficient gold to ensure that all issued digital currency units that have yet to be redeemed for money or gold can be redeemed in gold. Additionally, the bill allows for establishing a fee, at a necessary rate, to cover the costs of administering this chapter.
Although these bills have yet to be presented for a vote, they specify that the act will come into effect on September 1, 2023. Recent arguments against the U.S. instituting a CBDC have been made by a number of legislators.
Governor Ron DeSantis of Florida stated at a press conference on March 20 that CBDCs would provide the government with “more power” and a “direct view of all consumer activities.”
On March 21, a bill was proposed by Senator Ted Cruz with the aim of prohibiting the Federal Reserve from releasing a central bank digital currency (CBDC) that would be available directly to the public. The senator emphasized safeguarding financial privacy, preserving the dollar’s supremacy, and promoting innovation in digital currency policies.