The Texas legislature proposes a gold -covered digital currency

The Texas legislature proposes a gold -covered digital currency

While some US supervisory authorities propose the introduction of a Central Bank Digital Currency (CBDC) controlled by the Federal Reserve, which could be manipulated as the dollar, Texas wants a digital currency that can be exchanged for physical gold and cash.

Senate Bill 2334, introduced by Senator Bryan Hughes, and House Bill 4903, brought in by representative Mark Dorazio, are the first proposal for a state currency that is not covered by the dollar but by gold.

The gold standard ... but with a crypto twist

The digital currency represents a fraction of a troy ounce of gold - the Republican Senator Bryen Hughes submitted the Senate draft 2334, in which it suggested to the Texas Court of Auditors to create the asset, the value of which is represented by a fraction of a troy ounce of gold.

"The auditor sets a digital currency covered by gold, so that every unit output of the digital currency represents a certain fraction of a faithful ounce of gold."

The auditor must also set up a fund for the owners of digital currencies in order to simply transfer or assign them to others via any payment system.

In addition, the compatroller as a trustee and trustee will act in the name of the owner of digital currencies and "hold sufficient gold to enable the gold resolution for all units of the digital currency that have not yet been spent and have not yet been redeemed".

a stable coin with gold binding, which is supported by the Texas government

According to the draft law, currency reserves must be 100 % stored with gold. In order to prevent manipulation on the liquidity of the digital currency, the legislature has taken preventive measures. Although unlimited purchases are allowed, the auditor must acquire the same partial amount in tulile in gold in order to ensure its support and stability and to avoid a possible imbalance between the supply and demand of the digital currency.

"[The Controller Should] Buy a fraction of subcontracts gold, which corresponds to the number of units of the digital currency that was issued to the buyer, and the buyer spends a number of units of the digital currency that corresponds to the amount of gold that the auditor buys with the money received."

If a buyer wants to sell his coins, the controller or the named area must have the same amount in cash to cover the funds.

In addition, those who want to exchange their coins can do so about a certain agent and receive the equivalent in small gold coins or large bars.

"The auditor or a person with whom the auditor has concluded a contract, or a person who acts as a trustee for the purposes of this chapter can manage the digital currency against gold using bars or coins in standard sizes and necessary fractions in cash as output to facilitate the transaction."

This would not be the first state -supported digital currency. Although the digital dollar is still far from the implementation (and its edition is not even safe), Miami and New York have already tested the output of their official tokens.

Things didn't go very well, but at least that's a beginning. In contrast to these currencies, the value of which fluctuates, every token of the state of Texas would have an equivalent value in gold, similar to that, for example, the token Digix Gold and Pax Gold.

.