Two Texas legislators have introduced identical bills to create a gold-backed state digital currencydespite the objections of several US legislators against the introduction of a central bank digital currency (CBDC, for its acronym in English).
He Senator Bryan Hughes introduced Senate Bill 2334 on March 10and the Rep. Mark Dorazio introduced House Bill 4903 the same daywhich states that an equivalent fractional amount of physical gold would back the proposed digital currency.
“Each unit of digital currency issued represents a specific fraction of a troy ounce of gold held in trust,” the bills said.
The bill explains that once a person buys a certain amount of digital currency, the receiver would use that money received to buy an equivalent amount of gold.
The buyer would then receive the digital currency equivalent to the amount of gold that the receiver buys with the money received from the buyer..
The value of one unit of digital currency must be equal to the value of the corresponding fraction of a troy ounce of gold at the time of the transaction.
“The trustee will hold enough gold to be able to redeem all units of the digital currency that have been issued and have not yet been redeemed for money or gold”the bill said.
It was added that a fee could be established “for the amount that is necessary” to cover the costs of administration of this chapter.
Although neither of the two bills has been approved or put to a vote, both establish that this law will enter “into force on September 1, 2023”.
Recently, several US legislators have been against the US introducing a CBDC.
Florida Governor Ron DeSantis stated at a press conference on March 20 that the CBDC would give the government “more power.”adding that it provides the government with “a direct view of all consumer activities.”
For his part, On March 21, Republican Senator Ted Cruz introduced a bill to block the Fed’s launch of a “direct-to-consumer” CBDCstating that it is “more important than ever” to ensure that US policy on digital currencies protects “financial privacy, maintains dollar dominance and cultivates innovation.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.